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Recovery From Depression: Australia In An Argentine Mirror 1895–1913

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  • Ian W. McLean

Abstract

The recovery from the 1890s depression in Australia was prolonged, and economic growth from 1895 to 1913 was below that in the comparable settler economies of Argentina and Canada. Why? Australia’s hesitant initial recovery is typically attributed to the imbalances in the economy resulting from the preceding boom, and its further delay to severe drought. Drawing on Argentine experience, it is suggested that additional factors need to be considered. Unlike Argentina, the unwillingness or inability of Australian governments to reschedule foreign debt or devalue the exchange rate exacerbated the slump. And the era of low‐cost pioneer farming ended earlier than in Argentina (or Canada).

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  • Ian W. McLean, 2006. "Recovery From Depression: Australia In An Argentine Mirror 1895–1913," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 46(3), pages 215-241, November.
    • Handle: RePEc:bla:ozechr:v:46:y:2006:i:3:p:215-241
    DOI: 10.1111/j.1467-8446.2006.00179.x
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    1. Stephen Broadberry & Douglas A. Irwin, 2007. "Lost Exceptionalism? Comparative Income and Productivity in Australia and the UK, 1861–1948," The Economic Record, The Economic Society of Australia, vol. 83(262), pages 262-274, September.
    2. Xavier Tafunell & Cristián Ducoing, 2016. "Non-Residential Capital Stock in Latin America, 1875–2008: New Estimates and International Comparisons," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 56(1), pages 46-69, March.
    3. Peter L. Rousseau & Paul Wachtel, 2015. "Episodes of Financial Deepening: Credit Booms or Growth Generators?," Working Papers 15-09, New York University, Leonard N. Stern School of Business, Department of Economics.
    4. McLean, Ian W., 2007. "Why was Australia so rich?," Explorations in Economic History, Elsevier, vol. 44(4), pages 635-656, October.
    5. Muge Adalet & Barry Eichengreen, 2007. "Current Account Reversals: Always a Problem?," NBER Chapters, in: G7 Current Account Imbalances: Sustainability and Adjustment, pages 205-246, National Bureau of Economic Research, Inc.
    6. Andrew Seltzer & Martin Shanahan & Claire Wright, 2022. "The Rise and Fall and Rise (?) of Economic History in Australia," CEH Discussion Papers 05, Centre for Economic History, Research School of Economics, Australian National University.
    7. Awaworyi Churchill, Sefa & Inekwe, John & Ivanovski, Kris & Smyth, Russell, 2020. "Stationarity properties of per capita CO2 emissions in the OECD in the very long-run: A replication and extension analysis," Energy Economics, Elsevier, vol. 90(C).
    8. Xavier Tafunell & Cristián Ducoing, 2015. "Non-residential capital stock in Latin America. 1875-2008," Economics Working Papers 1472, Department of Economics and Business, Universitat Pompeu Fabra.

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    More about this item

    JEL classification:

    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • N16 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Latin America; Caribbean
    • N17 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Africa; Oceania

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