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, resulting in a severe economic downturn. If central banks had maintained their reserve levels from 1928, the deflation could have been avoided. France's actions were more responsible for the global deflation of 1929-33 than the United States.