France's Gold Hoarding Blamed for Worldwide Deflation During Great Depression
France played a significant role in causing the Great Depression by hoarding gold reserves, which led to a shortage of money worldwide. This caused prices to drop drastically, leading to a severe economic downturn. If central banks had maintained their reserve levels from 1928, the deflation could have been avoided. France was more responsible than the United States for the global deflation of 1929-33.