Read Eichengreen and Sachs (1985) on the role of exchange rates in the Great Depression and
the subsequent recovery. Explain the logic of the “standard view” of exchange rate depreciation
as beggar-thy-neighbor policy. Summarize the arguments that Eichengreen and Sachs make
against this view (including what portions they accept as valid). Do you find their arguments
persuasive? What do their arguments imply about the potential for cooperative monetary and
exchange rate policy to mitigate the effects of the Depression?