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The Great Depression in Belgium: an Open-Economy Analysis

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  • Luca Pensieroso

    (Chargé de Recherches FRS - FNRS, IRES, Université catholique de Louvain.)

Abstract

This paper studies the Great Depression in Belgium within the open-economy dynamic general equilibrium approach. Results from the simulations show that a two-good model with total factor productivity shocks and nominal exchange rate shocks can account for most of the 1929-1934 output drop. The data mimicking ability of the model is good along other dimensions as well, most notably hours worked, the consumption price index and the terms of trade. The model is also able to catch some of the dynamics of imports and exports.
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Suggested Citation

  • Luca Pensieroso, 2012. "The Great Depression in Belgium: an Open-Economy Analysis," Working Papers 12-01, Association Française de Cliométrie (AFC).
    • Handle: RePEc:afc:wpaper:12-01
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    Cited by:

    1. Claude Diebolt & Mamoudou Toure & Jamel Trabelsi, 2012. "Monetary Credibility Effects on Inflation Dynamics: A Macrohistorical Case Study," Working Papers 12-04, Association Française de Cliométrie (AFC).
    2. Thi Hong Van Hoang, 2012. "Has gold been a hedge against inflation in France from 1949 to 2011? Empirical evidence of the French specificity," Working Papers 12-05, Association Française de Cliométrie (AFC).

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    More about this item

    JEL classification:

    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical

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