was a boon for exports, while inflation reduced the debt burden. As a result, "most social groups seem to have enjoyed rising real incomes, in the case of workers for example by somewhere between 9 and 26 per cent." The government of Raymond Poincaré, which came to power in July 1926, managed to stabilize France's financial situation by reducing government expenditure, raising interest rates, raising taxes, and returning in part to the gold standard in June 1928. This placed the value of the franc at one-fifth of its pre-war level, which kept French goods competitive internationally. Great Depression The worldwide decline after 1929 affected France a bit later than other countries, hitting around 1931. The depression was relatively mild: unemployment peaked under 5%, the fall in production was at most 20% below the 1929 output; there was no banking crisis. But the depression also lasted longer in France than in most other countries. Like many other countries, France had introduced the gold standard in the nineteenth century, meaning that it was generally possible to exchange bank notes for gold. Unlike other countries which abandoned the gold standard, like Grat Britain in 1931, France stuck to it until 1936, which caused a number of problems in times of recession and deflation. France lost competitiveness relative to Great Britain, because the latter was able to offer its products at a cheaper price due to the devaluation of its currency after leaving the gold standard. Furthermore, terminating fixed exchange rate regimes opened up opportunities for expansive monetary policy and thus influenced consumers’ expectations of future inflation, which was crucial for domestic demand. The French economy only started to recover when France abandoned the gold standard. However, the depression had some effects on the local economy, and partly explains the February 6, 1934 riots and even more the formation of the Popular Front, led by SFIO socialist leader Léon Blum, which won the elections in 1936. France's relatively high degree of self-sufficiency meant the damage was considerably less than in nations like Germany. Popular Front: 1936 Hardship and unemployment were high enough to lead to rioting and the rise of the socialist Popular Front, which won the 1936 elections with a coalition of Socialists and Radicals, and support from the Communists. Léon Blum became the first Socialist prime minister. The election brought a massive wave of strikes, with involving 2 million workers, and their