Deflation during the International Great Depression led to higher real wages, which some believed caused the economic downturn. However, a study of 17 countries from 1930-33 found that high real wages alone did not explain the output changes. Instead, productivity shocks played a significant role, accounting for about 2/3 of output changes, while monetary shocks accounted for the remaining 1/3. This suggests that the Depression was not solely due to firms responding to high real wages by reducing employment, but rather a combination of factors including productivity changes.