The Industrial Cycle and the Collapse of the Gold Pool in March 1968

Industrial cycles normally last about ten years — give or take a year or two. The second industrial cycle after World War II began with the 1957-58 global recession. Given that the industrial cycle lasts about ten years, we normally expect the next global downturn to occur around 1967. Indeed, 1966-67 saw a credit crunch and a “mini-recession” in the United States, as well as a recession in West Germany from 1966 to 1967.

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