War, Inflation, Monetary Reform and the Art Market
AbstractDuring World War II, the art market experienced a massive boom in occupied countries. The discretion, the inflation proof character, the absence of market intervention and the possibility to resell artworks abroad have been suggested to explain why investing in artworks was one of the most interesting opportunities under the German boot. On basis of an original database of close to 4000 artworks sold between 1944 and 1951 at Giroux, one of the most important Art Gallery in Brussels, this paper analyzes, the price movements on the Belgian art market following the liberation. Market reactions following the war are used to understand which motivations played the most important role in investorsÕ decisions. Prices on the art market experienced a massive drop. This huge price decline is attributed to two elements: fear of prosecution for war profits and the monetary reforms set into place in October 1944.
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Bibliographic InfoPaper provided by European Historical Economics Society (EHES) in its series Working Papers with number 0012.
Length: 34 pages
Date of creation: Jan 2012
Date of revision:
Art market; Art Investment; WWII; Belgium; Post-war; Monetary reforms;
Find related papers by JEL classification:
- N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
- N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-
- Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-25 (All new papers)
- NEP-CUL-2012-01-25 (Cultural Economics)
- NEP-HIS-2012-01-25 (Business, Economic & Financial History)
- NEP-MAC-2012-01-25 (Macroeconomics)
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