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Weltwirtschaftkrise und New-Economy-Crash: Parallelen und Unterschiede
[Great Depression and New-Economy-Crash: analogies and differences]


  • Ehrenfeld, Wilfried


When comparing the New Economy and the time before the Great Depression there are two obvious analogies. In the 1920s as in the 1990s there was an investment boom triggered through the use of new technologies and rapid technological development. In the 1920s, these were the electricity and the combustion engine, in the 1990s computer hardware, software and network technologies. This boom seemed to promise steadily rising corporate profits. The capital needs could be well covered ever the stock, as earnings expectations were high. Both decades had an acceleration of productivity growth, low unemployment and low inflation rates. The sharp fall of the stock was just like the previous stock market boom equally an indicator of both scenarios. In both cases a stock market bubble had formed. The real economic development after the stock market crash, however, differs fundamentally.

Suggested Citation

  • Ehrenfeld, Wilfried, 2005. "Weltwirtschaftkrise und New-Economy-Crash: Parallelen und Unterschiede
    [Great Depression and New-Economy-Crash: analogies and differences]
    ," MPRA Paper 13287, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:13287

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    References listed on IDEAS

    1. Issam Abdalla & Victor Murinde, 1997. "Exchange rate and stock price interactions in emerging financial markets: evidence on India, Korea, Pakistan and the Philippines," Applied Financial Economics, Taylor & Francis Journals, vol. 7(1), pages 25-35.
    2. Toda, Hiro Y. & Yamamoto, Taku, 1995. "Statistical inference in vector autoregressions with possibly integrated processes," Journal of Econometrics, Elsevier, vol. 66(1-2), pages 225-250.
    3. Giovannini, Alberto & Jorion, Philippe, 1987. "Interest rates and risk premia in the stock market and in the foreign exchange market," Journal of International Money and Finance, Elsevier, vol. 6(1), pages 107-123, March.
    4. Solnik, Bruno, 1987. " Using Financial Prices to Test Exchange Rate Models: A Note," Journal of Finance, American Finance Association, vol. 42(1), pages 141-149, March.
    5. Stavarek, Daniel, 2004. "Stock Prices and Exchange Rates in the EU and the USA: Evidence of their Mutual Interactions," MPRA Paper 7297, University Library of Munich, Germany.
    6. Kim, Ki-ho, 2003. "Dollar exchange rate and stock price: evidence from multivariate cointegration and error correction model," Review of Financial Economics, Elsevier, vol. 12(3), pages 301-313.
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    More about this item


    Great Depression ; Weltwirtschaftskrise ; New Economy;

    JEL classification:

    • F00 - International Economics - - General - - - General
    • N12 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: 1913-
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)


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