A striking example from U.S. history is Franklin Roosevelt’s 40 percent devaluation of the dollar against gold in 1933-34, enforced by a program of gold purchases and domestic money creation. The devaluation and the rapid increase in money supply it permitted ended the U.S. deflation remarkably quickly.
Despite some moderation, the ongoing strong momentum in economic growth continued in the first quarter of 2007. The euro area continued to benefit from the robust ongoing expansion of the world economy, while substantial gains in corporate profits and an extended period of very favourable financing conditions supported investment growth and employment.