Banks, debt and deflation in the Great Depression

.

Chapter 4 in Banks and Finance in Modern Macroeconomics, 2019, pp 68-89 from Edward Elgar Publishing

Abstract: The Great Depression of the 1930s was a major concern of many economists. This chapter examines Fisher’s and Keynes’s viewpoints on deflation and financial crises, a topic that returned to interest several times in the aftermath of the late 200s crisis. Keynes devoted attention to deflation in relation to Britain’s return to the gold standard in the 1920s and during the international financial crises after the 1929 crash. Fisher’s ideas were affected by the US financial crisis in 1929 and the early 1930s. From the optimism of the ‘roaring twenties’, he turned to explain the major depressions in his debt-deflation theory. Both scholars analysed the real effects of bringing the financial structure to near collapse. Keynes never embodied his views on banks and financial crises into his major works, but his aversion to the costs of deflation explains his lack of faith in price adjustments to restore full employment.

Keywords: Economics and Finance (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/9781786431523/chapter04.xhtml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:17355_4

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().