However, expanding the research focus to include the experiences of a wide range of countries has both provided additional support for the role of monetary factors (including the international gold standard) and enriched our understanding of the causes of the Depression. Some important lessons emerge from the story. One lesson is that ideas are critical.
4 National authorities can also make a substantial contribution to ensuring the proper functioning of adjustment mechanisms within the European Union by conducting welldesigned fiscal policy. The best contribution fiscal policy can make to the proper functioning of the euro area is by being disciplined and medium-term oriented, fully in line with the orientations provided by the Stability and Growth Pact.