The Founding of the Federal Reserve, the Great Depression and the Evolution of the U.S. Interbank Network

Matthew Jaremski and David Wheelock

No 26034, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Financial network structure is an important determinant of systemic risk. This paper examines how the U.S. interbank network evolved over a long and important period that included two key events: the founding of the Federal Reserve and the Great Depression. Banks established connections to correspondents that joined the Federal Reserve in cities with Fed offices, initially reducing overall network concentration. The network became even more focused on Fed cities during the Depression, as survival rates were higher for banks with more existing connections to Fed cities, and as survivors established new connections to those cities over time.

JEL-codes: G21 L14 N22 (search for similar items in EconPapers)
Date: 2019-07
New Economics Papers: this item is included in nep-cba, nep-his and nep-mon
Note: DAE
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Citations: View citations in EconPapers (3)

Published as Matthew Jaremski & David C. Wheelock, 2020. "The Founding of the Federal Reserve, the Great Depression, and the Evolution of the U.S. Interbank Network," The Journal of Economic History, vol 80(1), pages 69-99.

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Journal Article: The Founding of the Federal Reserve, the Great Depression, and the Evolution of the U.S. Interbank Network (2020)
Working Paper: The Founding of the Federal Reserve, the Great Depression and the Evolution of the U.S. Interbank Network (2019)
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