NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Great Crash and the Onset of the Great Depression

Christina D. Romer

NBER Working Paper No. 2639
Issued in June 1988
NBER Program(s):   EFG

This paper argues that the collapse of stock prices in October 1929 generated temporary uncertainty about future income which caused consumers to forego purchases of durable and semidurable goods in late 1929 and much of 1930. Evidence that the stock market crash generated uncertainty is provided by the decline in confidence expressed by contemporary forecasters. Evidence that this uncertainty affected consumer behavior is provided by the fact that spending on consumer durables and semidurables declined immediately following the Great Crash and by the fact that there is a negative historical relationship between stock market variability and the production of consumer durables in the prewar era.

download in pdf format
   (372 K)

email paper

This paper is available as PDF (372 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w2639

Published: Quarterly Journal of Economics, Vol. 105, pp. 597-624, August 1990. citation courtesy of

Users who downloaded this paper also downloaded these:
Temin h0062 The Great Depression
Bernanke w1054 Non-Monetary Effects of the Financial Crisis in the Propagation of the Great Depression
Bemanke and James The Gold Standard, Deflation, and Financial Crisis in the Great Depression: An International Comparison
Eichengreen and Temin w6060 The Gold Standard and the Great Depression
Bernanke w4814 The Macroeconomics of the Great Depression: A Comparative Approach
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us