IDEAS home Printed from https://ideas.repec.org/a/cup/reveco/v40y2022i1p67-98_4.html
   My bibliography  Save this article

The Impact Of The First World War On The Spanish Money Market: New Evidence From Money Market And Bank Lending Interest Rates, 1900–1935

Author

Listed:
  • Jorge-Sotelo, Enrique

Abstract

This paper provides a new index of money market and bank lending interest rates in Spain for 1900–1935. New archival evidence reveals a structural change in market interest rates vis-à-vis the official rates charged by the Banco de España (BdE). Before 1914, the BdE rate operated as a ceiling to market rates. The outbreak of the First World War caused market rates to soar and the BdE rate started operating as a floor, as bank liquidity started depending on the BdE. This was accompanied by new banking legislation introduced in 1921, which changed the collateral framework through which the BdE lent to banks. The resulting interest rate index illustrates the persistent impact of financial deglobalisation caused by the outbreak of the War.

Suggested Citation

  • Jorge-Sotelo, Enrique, 2022. "The Impact Of The First World War On The Spanish Money Market: New Evidence From Money Market And Bank Lending Interest Rates, 1900–1935," Revista de Historia Económica / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 40(1), pages 67-98, March.
  • Handle: RePEc:cup:reveco:v:40:y:2022:i:1:p:67-98_4
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0212610920000154/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:reveco:v:40:y:2022:i:1:p:67-98_4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/rhe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.