Economic History Seminar: Mrdjan Mladjan: Accelerating into the Abyss: Financial Dependence and the Great Depression

The credit channel, with U.S. weather as an instrument:

Economic History Seminar: Mrdjan Mladjan: Accelerating into the Abyss: Financial Dependence and the Great Depression

 

Abstract: The role of bank failures in the propagation of the Great Depression remains disputed.  Cole and Ohanian (1999, 2000) concluded that bank failures could not have contributed much to the severity of the Depression, not least because deposits overall declined much less than output.  Even the research...