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

Author

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  • Guillaume Bazot

    (LED - Laboratoire d'Economie Dionysien - UP8 - Université Paris 8 Vincennes-Saint-Denis)

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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Suggested Citation

  • Guillaume Bazot, 2014. "Local liquidity constraints: What place for central bank regional policy? The French experience during the Belle Époque (1880–1913)," Post-Print hal-04288223, HAL.
    • Handle: RePEc:hal:journl:hal-04288223
    DOI: 10.1016/j.eeh.2013.10.001
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    References listed on IDEAS

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    1. Combes, Pierre-Philippe & Lafourcade, Miren & Thisse, Jacques-François & Toutain, Jean-Claude, 2011. "The rise and fall of spatial inequalities in France: A long-run perspective," Explorations in Economic History, Elsevier, vol. 48(2), pages 243-271, April.
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    8. Liesse, Andre, 1909. "Evolution of Credit and Banks in France," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number liesse1909.
    9. Xavier Freixas, 2005. "Interbank Market Integration under Asymmetric Information," The Review of Financial Studies, Society for Financial Studies, vol. 18(2), pages 459-490.
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    11. de Lambert Thibault, 1999. "Michel Lescure, Alain Plessis (dir.), Banques locales et banques régionales en France au XIXe siècle," Histoire, économie & société, Programme National Persée, vol. 18(4), pages 828-828.
    12. repec:adr:anecst:y:2014:i:113-114:p:14 is not listed on IDEAS
    13. Viral V. Acharya & Denis Gromb & Tanju Yorulmazer, 2012. "Imperfect Competition in the Interbank Market for Liquidity as a Rationale for Central Banking," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(2), pages 184-217, April.
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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

    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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