Monetary Intervention Mitigated Banking Panics during the Great Depression: Quasi-Experimental Evidence from a Federal Reserve District Border, 1929-1933
Abstract
The Federal Reserve Act divided Mississippi between the 6th (Atlanta) and 8th (St. Louis) Districts. During the Great Depression, these districts' policies differed. Atlanta championed monetary activism and the extension of aid to ailing banks. St. Louis eschewed expansionary initiatives. During a banking crisis in 1930, Atlanta expedited lending to banks in need. St. Louis did not. Outcomes differed across districts. In Atlanta, banks survived at higher rates, lending continued at higher levels, commerce contracted less, and recovery began earlier. These patterns indicate that central bank intervention influenced bank health, credit availability, and business activity. (c) 2009 by The University of Chicago. All rights reserved..Download Info
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Bibliographic Info
Article provided by University of Chicago Press in its journal Journal of Political Economy.
Volume (Year): 117 (2009)
Issue (Month): 6 (December)
Pages: 1031-1073
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Web page: http://www.journals.uchicago.edu/JPE/
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- Angrist, Joshua & Pischke, Jörn-Steffen, 2010. "The Credibility Revolution in Empirical Economics: How Better Research Design Is Taking the Con out of Econometrics," IZA Discussion Papers 4800, Institute for the Study of Labor (IZA).
- Joshua D. Angrist & Jörn-Steffen Pischke, 2010. "The Credibility Revolution in Empirical Economics: How Better Research Design is Taking the Con out of Econometrics," Working Paper Series of the German Council for Social and Economic Data 142, German Council for Social and Economic Data (RatSWD).
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- Haelim M. Park & Gary Richardson, 2010. "Retail Trade by Federal Reserve District, 1919 to 1939: A Statistical History," NBER Working Papers 16617, National Bureau of Economic Research, Inc.
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"Policymaking in the Eurozone and the Core Vs. Perifphery Problem,"
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