The depression years were characterized by international monetary
warfare. In trying to stimulate domestic economies by increasing exports,
country after country devalued, so that the early to mid-1930s may be
characterized as a period of competitive devaluations. Governments also
resorted to foreign exchange controls in an attempt to manipulate net
exports in a manner that would increase GDP (gross domestic product).
Of course, with the onslaught of World War II, the hostile countries uti-
lized foreign exchange controls to aid the war-financing effort.