More About Europe’s Two Depressions
A slightly updated version of the figure:
That’s European manufacturing from the League of Nations, starting 1929 — with annual data placed at the midpoint of each year — and Eurostat for the EU15, starting January 2007.
The comparison is in aid of several projects, most immediately a Princeton talk next month. My point is that Europe isn’t actually doing all that much better than it did in the Great Depression. And why should it be doing better? It has effectively replicated both the troubles of the gold standard and the misguided focus on austerity.