The depression of 1920–1921: a credit induced boom and a market based recovery?

详细信息    查看全文

• 作者：Patrick Newman
• 关键词：Depression of 1920–1921 ; Austrian business cycle theory ; Federal reserve ; Liquidation
• 刊名：The Review of Austrian Economics
• 出版年：2016
• 出版时间：December 2016
• 年：2016
• 卷：29
• 期：4
• 页码：387-414
• 全文大小：814 KB
• 刊物类别：Business and Economics
• 刊物主题：Economics
  Public Finance and Economics
  Political Science
  Methodology and the History of Economic Thought
  
• 出版者：Springer Netherlands
• ISSN：1573-7128
• 卷排序：29

文摘

This paper examines the American post-WW1 boom and bust. It argues that the Federal Reserve’s monetary easing from 1919 to 1920 created an Austrian Business Cycle (ABC), or an unsustainable credit boom. The collapse of the boom initiated the Depression of 1920–1921. The subsequent laissez faire policy promoted a swift recovery. In particular, the natural recovery began following a severe liquidation of firms, reallocation of resources, and wage cuts stimulated by fiscal and monetary contraction. Contrary to some other accounts, we find that significant recovery began before the Federal Reserve’s 1921–1922 monetary easing affected the economy. We also address other criticisms of the credit-cycle interpretation.