EconPapers    
Economics at your fingertips  
 

From Great Depression to Great Credit Crisis: similarities, differences and lessons

Miguel Almunia (), Agustín Bénétrix (), Barry Eichengreen (), Kevin O'Rourke () and Gisela Rua ()

Economic Policy, 2010, vol. 25, 219-265

Abstract: "The Great Depression of the 1930s and the Great Credit Crisis of the 2000s had similar causes but elicited strikingly different policy responses. While it remains too early to assess the effectiveness of current policy, it is possible to analyse monetary and fiscal responses in the 1930s as a natural experiment or counterfactual capable of shedding light on the impact of current policies. We employ vector autoregressions, instrumental variables, and qualitative evidence for 27 countries in the period 1925-39. The results suggest that monetary and fiscal stimulus was effective -- that where it did not make a difference it was not tried. They shed light on the debate over fiscal multipliers in episodes of financial crisis. They are consistent with multipliers at the higher end of those estimated in the recent literature, and with the argument that the impact of fiscal stimulus will be greater when banking systems are dysfunctional and monetary policy is constrained by the zero bound." Copyright (c) CEPR, CES, MSH, 2010.

Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (77) Track citations by RSS feed

Downloads: (external link)
http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0327.2010.00242.x link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: From Great Depression to Great Credit Crisis: Similarities, Differences and Lessons (2009) Downloads
Working Paper: From Great Depression to Great Credit Crisis: Similarities, Differences and Lessons (2009) Downloads
Working Paper: From Great Depression to Great Credit Crisis: Similarities, Differences and Lessons (2009) Downloads
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:bla:ecpoli:v:25:y:2010:i::p:219-265

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0266-4658

Access Statistics for this article

Economic Policy is currently edited by Giuseppe Bertola, Philippe Martin and Paul Seabright

More articles in Economic Policy from CEPR Contact information at EDIRC., CES Contact information at EDIRC., MSH Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2019-04-13
Handle: RePEc:bla:ecpoli:v:25:y:2010:i::p:219-265