In France, how did the socialists attempt to fight the effects of the Great Depression

The French economy, well behaved in the postwar period, was faced with the crisis, when in 1931, Great Britain and many other countries decided to abandon the gold standard. Until then, the devaluation of the franc and protectionism made France weakly hit by the crisis. The problem arose in the dilemma of maintaining the gold standard, favored by its large amount of reserves of this material, or devalue. The decision to maintain the gold standard, due to the fear of inflation, imposed a deflationary line of action to adapt French prices to world levels within a framework of general devaluation. Thus, deflation was promoted by reducing expenses, lowering wages and maintaining high interest rates. This caused social tension, falling investments and no positive results.

However, in 1936, a new government of a socialist nature produced a turn of significance. The gold standard was abandoned with the consequent devaluation of the franc, a moderate public works plan was carried out, agricultural prices were regulated and salaries were increased. The immediate transfer of wage increases to prices re-ignited inflation and social tension reappeared