After the slump

In comparative international terms, the economic depression in Britain in the thirties was relatively mild. Her recovery, moreover, was earlier and more sustained than in other advanced countries. Although Germany experienced a marked decline in economic activity during the depression, her recovery was very rapid indeed. One might therefore conclude that economic policies pursued in both countries in the thirties, which included widespread cartelization, price fixing, protectionism, and, especially in Germany, a large increase in state demand, were particularly effective. It is suggested in this volume, however, that the positive short-term effects of economic recovery policies in Britain and Germany in the thirties need to be considered alongside the likely costs imposed on longer-term economic performance.