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Economist Douglas Irwin of Dartmouth College has stirred up a bit of a fuss by concluding in some academic research that it was France, not the United States, that was most to blame for The Great Depression.
Irwin's theory, in a paper posted here by the National Bureau of Economic Research, is that France created an artificial shortage of gold reserves when it increased its share from 7 percent to 27 percent between 1927 and 1932. Because major currencies at the time were backed by gold under the Gold Standard, this put other countries under enormous deflationary pressure.
To prove his point, Irwin ran a model looking at what would have happened without the French move. The results:
Counterfactual simulations indicate that world prices would have increased slightly between 1929 and 1933, instead of declining calamitously.
It's hard to watch France's political and cultural elite rush to support filmmaker Roman Polanski against extradition to the United States on a decades-old sex charge and not wonder exactly how they interpret the national motto "liberté, égalité, fraternité." It's tempting to ask whether they're defending the liberty to break the law and skip town, respecting the equality of all before the law and championing a brotherhood of artists who can do no wrong. (Photo: Roman Polanski, 19 Feb 2009/Hannibal Hanschke)
Here in Paris, Foreign Minister Bernard Kouchner declared the arrest was "a bit sinister ... frankly, (arresting) a man of such talent recognised around the world, recognised in the country where he was arrested -- that's not very nice." He and his Polish counterpart have written to Secretary of State Hillary Clinton about the issue. Culture Minister Frédéric Mitterrand said "just as there is a generous America that we like, there's also an America that scares us, and that's the America that has just shown us its face." Directors, actors and intellectuals have been signing a petition demanding Polanski's immediate release.