TY  - JOUR
AU  - Richardson,Gary
AU  - Horn,Patrick Van
TI  - Fetters of Debt, Deposit, or Gold during the Great Depression? The International Propagation of the Banking Crisis of 1931
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12983
PY  - 2007
Y2  - March 2007
UR  - http://www.nber.org/papers/w12983
L1  - http://www.nber.org/papers/w12983.pdf
N1  - Author contact info:
Gary Richardson
Department of Economics
University of California, Irvine
3155 Social Sciences Plaza
Irvine, CA 92697-5100
Tel: 949/824-3189
Fax: 949/824-2182
E-Mail: garyr@uci.edu

Patrick Van Horn
New College of Florida
Division of Social Sciences
5800 Bay Shore Road
Sarasota, FL 34243
E-Mail: pvanhorn@ncf.edu
AB  - A banking crisis began in Austria in May 1931 and intensified in July, when runs struck banks throughout Germany. In September, the crisis compelled Britain to quit the gold standard. Newly discovered data shows that failure rates rose for banks in New York City, at the center of the United States money market, in July and August 1931, before Britain abandoned the gold standard and before financial outflows compelled the Federal Reserve to raise interest rates. Banks in New York City had large exposures to foreign deposits and German debt. This paper tests to see whether the foreign exposure of money center banks linked the financial crises on the two sides of the Atlantic.
ER  -