New Deal policies and the persistence of the Great Depression
Subtitle: a general equilibrium analysis
By: Harold L. Cole and Lee E. Ohanian.
Contributors: Ohanian, Lee E.; Federal Reserve Bank of Minneapolis. Research Dept.
Series: Working paper / Federal Reserve Bank of Minneapolis, Research Dept. ;; 597; Working paper (Federal Reserve Bank of Minneapolis : Online) ;; 597.
Publisher: Federal Reserve Bank of Minneapolis
Published: 2001
Place of publication: [Minneapolis, Minn.]
Language: eng
Format: Electronic resource
Subjects: Depressions -- 1929 -- United States.; United States -- Economic policy -- 1933-1945.
Description: "There are two striking aspects of the recovery from the Great Depression in the United States: the recovery was very weak and real wages in several sectors rose significantly above trend.  These data contrast sharply with neoclassical theory, which predicts a strong recovery with low real wages.  We evaluate the contribution of New Deal cartelization policies designed to limit competition and increase labor bargaining power to the persistence of the Depression.  We develop a model of the bargaining process between labor and firms that occurred with these policies, and embed that model within a multi-sector dynamic general equilibrium model.  We find that New Deal cartelization policies are an important factor in accounting for the post-1933 Depression.  We also find that the key depressing element of New Deal policies was not collusion per se, but rather the link between paying high wages and collusion"--Federal Reserve Bank of Minneapolis web site.
Notes: Includes bibliographical references.
Title from abstract page as viewed on 1/5/2005.
"Revised May 2001."
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.