New data reveals that bank distress peaked in New York City, at the center of the United States money market, in July and August 1931, when the banking crisis peaked in Germany and before Britain abandoned the gold standard. This paper tests competing theories about the causes of New York's banking crisis. The cause appears to have been intensified regulatory scrutiny, which was a delayed reaction to the failure of the Bank of United States, rather than the exposure of money-center banks to events overseas.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
14120.
Length: Date of creation: Jun 2008 Date of revision: Handle: RePEc:nbr:nberwo:14120
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Find related papers by JEL classification: E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages N1 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations N12 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations - - - U.S.; Canada: 1913-
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