The Mother of All Sudden Stops: Capital Flows and Reversals in Europe, 1919-1932

Barry Eichengreen and Olivier Accominotti

No 9670, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We present new data documenting European capital issues in major financial centers from 1919 to 1932. Push factors (conditions in international capital markets) perform better than pull factors (conditions in the borrowing countries) in explaining the surge and reversal in capital flows. In particular, the sharp increase in stock market volatility in the major financial centers at the end of the 1920s figured importantly in the decline in foreign lending. We draw parallels with Europe today.

Keywords: Capital flows; Europe; Great depression; Sudden stop (search for similar items in EconPapers)
JEL-codes: F21 F32 F34 N13 N24 (search for similar items in EconPapers)
Date: 2013-10
New Economics Papers: this item is included in nep-his, nep-ifn and nep-opm
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Citations: View citations in EconPapers (23)

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