IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/122466.html
   My bibliography  Save this paper

Economic Crises in the 20th century: Brief Review and Comparison

Author

Listed:
  • Tsiflikidou, Ioanna-Maria
  • METAXAS, THEODORE

Abstract

This study aims to review major economic crises throughout the centuries, in order to see what valuable lessons can be learned from re-examining them. As the 20th century was marked by tremendous economic turmoils, that changed the world economy of today, we will focus on the Great Depression of 1929 and the Oil Crisis of 1973, comparing them also with the 21st century global crisis of 2008. Through a lens of historic and periodic analysis, content analysis, and comparative analysis, this study seeks to unravel the intricacies of these financial crises, their similarities, differences and what went wrong in each case and what role the Federal Reserve’s System played in in shaping economic outcomes. The findings underscore the significance of macroeconomic imbalances, poorly regulated financial markets, and inadequate risk management in amplifying the impact of economic events. Policymakers' responses and reforms after each crisis are examined, highlighting the recurring theme of claims of increased preparedness for future scenarios. The study concludes by urging a re-evaluation of the Federal Reserve's policies, emphasizing the need for a proactive and informed approach to address potential future crises and advocating for a better understanding of the global impact of national policies.

Suggested Citation

  • Tsiflikidou, Ioanna-Maria & METAXAS, THEODORE, 2023. "Economic Crises in the 20th century: Brief Review and Comparison," MPRA Paper 122466, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:122466
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/122466/1/MPRA_paper_122466.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christina D. Romer & David H. Romer, 2013. "The Most Dangerous Idea in Federal Reserve History: Monetary Policy Doesn't Matter," American Economic Review, American Economic Association, vol. 103(3), pages 55-60, May.
    2. Alan Kirman, 2010. "The Economic Crisis is a Crisis for Economic Theory ," CESifo Economic Studies, CESifo Group, vol. 56(4), pages 498-535, December.
    3. Christina D. Romer, 1990. "The Great Crash and the Onset of the Great Depression," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(3), pages 597-624.
    4. Mishkin, Frederic S, 1992. "Anatomy of a Financial Crisis," Journal of Evolutionary Economics, Springer, vol. 2(2), pages 115-130, August.
    5. Anna J. Schwartz, 2009. "Origins of the Financial Market Crisis of 2008," Cato Journal, Cato Journal, Cato Institute, vol. 29(1), pages 19-23, Winter.
    6. Adams, Richard Jr., 1983. "The role of research in policy development: The creation of the IMF cereal import facility," World Development, Elsevier, vol. 11(7), pages 549-563, July.
    7. Youngna Choi & Raphael Douady, 2012. "Financial crisis dynamics: attempt to define a market instability indicator," Quantitative Finance, Taylor & Francis Journals, vol. 12(9), pages 1351-1365, August.
    8. Stephen G. Cecchetti, 1997. "Understanding the Great Depression: Lessons for Current Policy," NBER Working Papers 6015, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lawrence J. Christiano & Roberto Motto & Massimo Rostagno, 2003. "The Great Depression and the Friedman-Schwartz hypothesis," Proceedings, Federal Reserve Bank of Cleveland, pages 1119-1215.
    2. Marfatia, Hardik A., 2015. "Monetary policy's time-varying impact on the US bond markets: Role of financial stress and risks," The North American Journal of Economics and Finance, Elsevier, vol. 34(C), pages 103-123.
    3. Aikman, David & Bush, Oliver & Davis, Alan, 2016. "Monetary versus macroprudential policies causal impacts of interest rates and credit controls in the era of the UK Radcliffe Report," Bank of England working papers 610, Bank of England.
    4. Muhammad RASHID, 2018. "Successes and Drawbacks of the Federal Reserve and the Impact on Financial Markets," Journal of Advanced Studies in Finance, ASERS Publishing, vol. 9(2), pages 56-59.
    5. John Davis, 2020. "Belief reversals as phase transitions and economic fragility: a complexity theory of financial cycles with reflexive agents," Review of Evolutionary Political Economy, Springer, vol. 1(1), pages 67-84, May.
    6. Joseph Mason, 2001. "Do Lender of Last Resort Policies Matter? The Effects of Reconstruction Finance Corporation Assistance to Banks During the Great Depression," Journal of Financial Services Research, Springer;Western Finance Association, vol. 20(1), pages 77-95, September.
    7. Marta Lachowska, 2013. "Expenditure, Confidence, and Uncertainty: Identifying Shocks to Consumer Confidence Using Daily Data," Upjohn Working Papers 13-197, W.E. Upjohn Institute for Employment Research.
    8. Sjur Didrik Flåm, 2013. "Reaching Market Equilibrium Merely by Bilateral Barters," CESifo Working Paper Series 4504, CESifo.
    9. Karl Whelan, 2021. "Central banks and inflation: where do we stand and how did we get here?," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 18(3), pages 310–330-3, December.
    10. Livio Di Matteo & Angela Redish, 2015. "The evolution of financial intermediation: Evidence from 19th-century Ontario microdata," Canadian Journal of Economics, Canadian Economics Association, vol. 48(3), pages 963-987, August.
    11. Eugene N. White, 2004. "Bubbles and Busts: The 1990s in the Mirror of the 1920s," FRU Working Papers 2004/09, University of Copenhagen. Department of Economics. Finance Research Unit.
    12. Fratianni, Michele & Giri, Federico, 2017. "The tale of two great crises," Journal of Economic Dynamics and Control, Elsevier, vol. 81(C), pages 5-31.
    13. Battaglia, Francesca & Buchanan, Bonnie G. & Fiordelisi, Franco & Ricci, Ornella, 2021. "Securitization and crash risk: Evidence from large European banks," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 72(C).
    14. Lilia Karnizova & Hashmat Khan, 2010. "The Stock Market and the Consumer Confidence Channel in Canada," Carleton Economic Papers 10-08, Carleton University, Department of Economics, revised 26 Aug 2011.
    15. Taner Akan & Tim Solle, 2022. "Do macroeconomic and financial governance matter? Evidence from Germany, 1950–2019," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 17(4), pages 993-1045, October.
    16. Nicholas Bloom & Max Floetotto & Nir Jaimovich & Itay Saporta†Eksten & Stephen J. Terry, 2018. "Really Uncertain Business Cycles," Econometrica, Econometric Society, vol. 86(3), pages 1031-1065, May.
    17. Sebastian Doerr & Stefan Gissler & José-Luis Peydró & Hans-Joachim Voth, 2018. "From finance to fascism," Economics Working Papers 1651, Department of Economics and Business, Universitat Pompeu Fabra, revised Nov 2020.
    18. Pierre L. Siklos, 2020. "Looking into the Rear-View Mirror: Lessons from Japan for the Eurozone and the U.S?," IMES Discussion Paper Series 20-E-02, Institute for Monetary and Economic Studies, Bank of Japan.
    19. Steven J. Davis, 2019. "Rising Policy Uncertainty," NBER Working Papers 26243, National Bureau of Economic Research, Inc.
    20. Richard S. Grossman & Christopher M. Meissner, 2010. "International aspects of the Great Depression and the crisis of 2007: similarities, differences, and lessons," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 26(3), pages 318-338, Autumn.

    More about this item

    Keywords

    economic crises; 20th century; qualitative analysis; review and comparison;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pra:mprapa:122466. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.