The Meaning of Money in the Great Depression
Hugh Rockoff,Hugh Rockoff +1 more
TLDR
The quality of the money stock declined during the banking crisis of the early 1930s as mentioned in this paper, and the decline in the quality of money stock contributed to the severity of the economic contraction.Abstract:
The quality of the money stock declined during the banking crises of the early 1930s. Bank deposits did not serve as a secure short- term store of purchasing power for use in an emergency as well as they had previously, and during the periods of restricted deposits in late 1932 and early 1933, bank deposits could not fulfill their basic function of being a medium of exchange. This paper presents some evidence to show that the decline in the quality of the money stock contributed to the severity of the contraction.read more
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Journal ArticleDOI
Consequences of Bank Distress During the Great Depression
TL;DR: Calomiris and Mason as mentioned in this paper argued that bank distress magnifies the extent of the economic decline during the Depression through changes in the aggregate supply of money and interest rates at the national level.
Journal ArticleDOI
Monetary Trends in the United States and the United Kingdom: Their Relation to Income, Prices, and Interest Rates, 1867–1975 . By Milton Friedman and Anna J. Schwartz. (Chicago: University of Chicago Press, 1982. xxxi + 664 pp. $48.00.)
TL;DR: In the preface to A Monetary History of the United States, 1867-1960 (1963), Friedman and Anna Schwartz noted that some statistical series used in this book are explained in full in the forthcoming companion volume, Trends and Cycles in the Stock of Money in the USA, 1868-1960 as discussed by the authors.
Journal ArticleDOI
Liquidity Shocks, Local Banks, and Economic Activity: Evidence from the 2007-2009 Crisis
Martin Goetz,Juan Carlos Gozzi +1 more
TL;DR: This article studied the relationship between shocks to local banks and economic activity, by exploiting differences in the liability structure of small U.S. commercial banks during the 2007-09 crisis and found that banks that relied more heavily on wholesale liabilities reduced lending relatively more during the crisis than banks funding themselves with retail deposits.
Journal ArticleDOI
Wall Street and Main Street: the macroeconomic consequences of New York bank suspensions, 1866–1914
TL;DR: This article showed that suspension periods were associated with a statistically significant and quantitatively large decline in real activity, on the order of 10-20% in the United States. But their results were not supported by empirical evidence at the national and regional levels.
Journal ArticleDOI
Credit Availability and the Collapse of the Banking Sector in the 1930s
Mark A. Carlson,Jonathan Rose +1 more
TL;DR: The authors examined the mechanism through which banking sector distress affects the availability of credit using the experience of the United States during the Great Depression and found that bank failures had the most dominant impact, but there is also some evidence for the importance of funding constraints from deposit outflows and of protracted bank liquidation.
References
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Non-Monetary Effects of the Financial Crisis in the Propagation of the Great Depression
TL;DR: This paper examined the effects of the financial crisis of the 1930s on the path of aggregate output during that period and argued that the financial disruptions of 1930-33 reduced the efficiency of the credit allocation process; and that the resulting higher cost and reduced availability of credit acted to depress aggregate demand.
Book
Monetary Trends in the United States and the United Kingdom: Their Relation to Income, Prices, and Interest Rates, 1867-1975
Milton Friedman,Anna J. Schwartz +1 more
Journal ArticleDOI
Monetary Trends in the United States and the United Kingdom: Their Relation to Income, Prices, and Interest Rates, 1867–1975 . By Milton Friedman and Anna J. Schwartz. (Chicago: University of Chicago Press, 1982. xxxi + 664 pp. $48.00.)
TL;DR: In the preface to A Monetary History of the United States, 1867-1960 (1963), Friedman and Anna Schwartz noted that some statistical series used in this book are explained in full in the forthcoming companion volume, Trends and Cycles in the Stock of Money in the USA, 1868-1960 as discussed by the authors.
Book
Money, output, and prices--evidence from a new monetary aggregate / by Julio J. Rotemberg, John C. Driscoll, and James M. Poterba
TL;DR: The authors derived a new utility-based monetary aggregate, the currency-equivalent (CE) aggregate, which equals the stock of currency that would be required for households to obtain the liquidity services that they get from their entire collection of monetary assets.
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Births, deaths, and marriages in the u.s. commercial banking industry
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