IDEAS home Printed from https://ideas.repec.org/p/fmg/fmgsps/sp108.html
   My bibliography  Save this paper

Financial Crises: Plus ça change, plus cest la même chose

Author

Listed:
  • P.J.R. Delargy

Abstract

During recent decades most financial crises were caused by excessive public sector expansion. The current Asian crisis, however, had its roots in private sector over-expansion. In this respect it had more in common with the pre-1914 crises. In this paper we compare and contrast these two sets of financial crises. Many of their initial features - a toppling investment boom, widespread bank failures, financial dislocation and withdrawal of prior capital inflows - were common and prevalent in both eras. We focus here on the differences between the two cases and this centres on the external exchange rate regime. Prior to 1914, the regime encouraged large-scale gold inflows in the aftermath of crisis, a re-liquification of the economy and interest rates returning rapidly to low levels. Stabilising expectations are harder to encourage in current circumstances; in their absence the essential alternative is to reduce the burden of foreign debt.

Suggested Citation

  • P.J.R. Delargy, 1999. "Financial Crises: Plus ça change, plus cest la même chose," FMG Special Papers sp108, Financial Markets Group.
  • Handle: RePEc:fmg:fmgsps:sp108
    as

    Download full text from publisher

    File URL: http://www.lse.ac.uk/fmg/documents/specialPapers/1990s/sp108.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Alexander D. Noyes, 1909. "A Year After the Panic of 1907," The Quarterly Journal of Economics, Oxford University Press, vol. 23(2), pages 185-212.
    2. Fratianni,Michele & Spinelli,Franco, 2005. "A Monetary History of Italy," Cambridge Books, Cambridge University Press, number 9780521023450, March.
    3. Milton Friedman & Anna J. Schwartz, 1963. "A Monetary History of the United States, 1867–1960," NBER Books, National Bureau of Economic Research, Inc, number frie63-1, January.
    4. Miller, Victoria, 1996. "Exchange rate crises with domestic bank runs: evidence from the 1980s," Journal of International Money and Finance, Elsevier, vol. 15(4), pages 637-656, August.
    5. Romer, Christina, 1986. "New Estimates of Prewar Gross National Product and Unemployment," The Journal of Economic History, Cambridge University Press, vol. 46(02), pages 341-352, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael D. Bordo & Barry Eichengreen & Douglas A. Irwin, 1999. "Is Globalization Today Really Different than Globalization a Hunderd Years Ago?," NBER Working Papers 7195, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fmg:fmgsps:sp108. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (The FMG Administration). General contact details of provider: http://www.lse.ac.uk/fmg/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.