Exchange rates, tariffs and prices in 1930s Britain

Chadha, Jagjit S., Lennard, Jason ORCID: 0000-0002-6700-8969, Solomou, Solomos and Thomas, Ryland (2024) Exchange rates, tariffs and prices in 1930s Britain. In: Clavin, Patricia, Corsetti, Giancarlo, Obstfeld, Maurice and Tooze, Adam, (eds.) Keynes's Economic Consequences of the Peace after 100 Years: Polemics and Policy. Cambridge University Press, Cambridge, UK, 325 - 363. ISBN 9781009407519

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Abstract

This chapter investigates the degree of pass-through from import prices and tariffs to wholesale prices in interwar Britain using a new high-frequency micro data set. The main results are: (i) Pass-through from import prices and tariffs to wholesale prices was economically and statistically significant. (ii) Despite devaluation, import prices exacerbated deflation in the early 1930s because of the global slump in export prices. (iii) Rising protection, however, was a mild stimulus to prices during the shift to inflation.

Item Type:	Book Section
Official URL:	http://ects/economics/history-economic-thought-and...
Additional Information:	© 2023 Cambridge University Press & Assessment
Divisions:	Economic History
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level; Inflation; Deflation F - International Economics > F1 - Trade > F13 - Commercial Policy; Protection; Promotion; Trade Negotiations; International Trade Organizations N - Economic History > N1 - Macroeconomics and Monetary Economics; Growth and Fluctuations > N14 - Europe: 1913-
Date Deposited:	25 Mar 2024 12:00
Last Modified:	11 Dec 2024 18:12
URI:	http://eprints.lse.ac.uk/id/eprint/122489

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