Crises now and then
Subtitle: what lessons from the last era of financial globalization
By: Barry Eichengreen, Michael D. Bordo.
Contributors: Bordo, Michael D.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper  8716; Working paper series (National Bureau of Economic Research : Online) ;; working paper no.  8716.
Publisher: National Bureau of Economic Research
Published: 2002
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Financial crises -- History -- 20th century.
Description: "We consider the operation of international capital markets in two periods of globalization, before 1914 and after 1971, with a focus on the crisis problem.  We explore the idea that the incidence of crises in these two periods reflects how capital flows were embedded in the larger economic system.  Other authors have made similar connections, suggesting that the international monetary framework was responsible for the relatively short-lived and mild nature of pre-World War I financial crises.  However, we show that currency crises in fact were of longer duration before 1914.  Only for banking and twin crises is there evidence that recovery was faster then than now.  This leads us to a somewhat different view of the role of the monetary regime in the propagation of financial crises.  A key difference between then and now, we suggest, is that prior to 1914 banking crises were less prone to undermine confidence in the currency, and to thereby compound financial problems, in the countries that were at the core of the international monetary system"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.