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Local liquidity constraints: What place for central bank regional policy? The French experience during the Belle Époque (1880–1913)

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  • Bazot, Guillaume

Abstract

This paper examines whether improved geographical access to the central bank contributed to local credit development in France during the Belle Époque (1880–1913). I use a new data set of credit by administrative area (département) in order to test the effect of the Bank of France network of branches on an indicator of local “credit development”. The results suggest that, despite potential market frictions created by the Bank of France, the positive effects of the network of its branches outweighed the negative ones.

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  • Bazot, Guillaume, 2014. "Local liquidity constraints: What place for central bank regional policy? The French experience during the Belle Époque (1880–1913)," Explorations in Economic History, Elsevier, vol. 52(C), pages 44-62.
    • Handle: RePEc:eee:exehis:v:52:y:2014:i:c:p:44-62
    DOI: 10.1016/j.eeh.2013.10.001
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    Cited by:

    1. Bignon, Vincent & Flandreau, Marc, 2018. "The Other Way: A Narrative History of the Bank of France," CEPR Discussion Papers 13138, C.E.P.R. Discussion Papers.
    2. Monnet, Eric & Velde, François R., 2020. "Money, Banking, and Old-School Historical Economics," CEPR Discussion Papers 15348, C.E.P.R. Discussion Papers.
    3. Jobst, Clemens & Bignon, Vincent, 2017. "Economic Crises and the Eligibility for the Lender of Last Resort: Evidence from Nineteenth Century France," CEPR Discussion Papers 11737, C.E.P.R. Discussion Papers.
    4. Bazot, Guillaume & Bordo, Michael D. & Monnet, Eric, 2016. "International shocks and the balance sheet of the Bank of France under the classical gold standard," Explorations in Economic History, Elsevier, vol. 62(C), pages 87-107.

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    More about this item

    Keywords

    Central bank branches; Liquidity constraints; Credit development; Banking policy;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • N23 - Economic History - - Financial Markets and Institutions - - - Europe: Pre-1913
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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