Coping with Financial Crises

1. Front Matter

   Pages i-xii

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2. Reflections on the Evolution of Financial Crises: Theory, History and Empirics

   • Michael D. Bordo

   Pages 1-15

3. The International Contagion of Short-Run Interest Rates During the Great Depression

   • Samuel Maveyraud, Antoine Parent

   Pages 17-46

4. Banking Crises and Lender of Last Resort in Theory and Practice in Swedish History, 1850–2010

   • Anders Ögren

   Pages 47-76

5. It is Always the Shadow Banks: The Regulatory Status of the Banks that Failed and Ignited America’s Greatest Financial Panics

   • Hugh Rockoff

   Pages 77-106

6. Milton Friedman and Anna J. Schwartz on the Inherent Instability of Fractional Reserve Banking

   • Hugh Rockoff

   Pages 107-129

7. Financial Crises and the Central Bank: Lessons from Japan During the 1920s

   • Masato Shizume

   Pages 131-148

8. Economic and Social Backgrounds of Top Executives of the Federal Reserve Before and After the Great Depression

   • Isao Suto

   Pages 149-192

This edited volume is based on original essays first presented at the World Economic History Conference, Kyoto, Japan, in August 2015. It also includes three essays subsequently written especially for this volume. All of the essays focus on financial markets in the periods leading up to, during, and after financial crises, and all are based on new data and archival research. The essays in this volume enlarge the range of historical evidence on the causes and potential cures for financial crises. While not neglecting the United States or Britain, the usual focus of financial historians, it includes studies of financial markets in times of crisis in Japan, Sweden, France, and other countries to achieve a truly global and historical perspective. As a result of the research reported here the reader will be made aware of several neglected factors that have shaped financial crises including the most recent crisis. These factors are (1) the role played by monetary policy in causing and ameliorating crises, (2) the role played by international contagion in private financial markets in propagating financial crises, (3) the role played by variations in the institutional structures of financial markets in determining the impact of financial crises, and (4) the role played by the social background of the central bankers who must contend with financial crises in determining the final outcome.

• Great Depression
• Financial Crisis
• Financial Panic
• Financial Crash
• Banking Crisis
• Banking Panic
• Banking Crash
• Lehman Brothers
• financial crises
• banking

“This collection of essays offers valuable insights into the various coping mechanisms by which governments respond to financial crises. The aficionado of financial crisis literature will also note the dedication of the volume to the memory of John James, a researcher of economic history and a colleague or mentor to many who toil in that field today. Well done.” (Robert F. Bruner, Journal of Economic Literature, Vol. 57, September, 2019)

• Department of Economics, Rutgers University, New Jersey, USA

  Hugh Rockoff

• School of Political Science and Economics, Meiji University, Tokyo, Japan

  Isao Suto

Hugh Rockoff is a distinguished professor of economics at Rutgers, The State University of New Jersey, and a research associate of the National Bureau of Economic Research. His research focuses on the history of monetary policy and financial regulation, and the economics of war. He is the author of books on the U.S. Free Banking Era and the history of price controls in the United States, and of many papers in professional journals. His latest book is America's Economic Way of War: War and the US Economy from the Spanish-American War to the Persian Gulf War. He is also the author, with Gary Walton, of a textbook: History of the American Economy. His undergraduate degree is from Earlham College and his Ph.D. from the University of Chicago.

Isao Suto is a professor of economic history at Meiji University, Tokyo. He gained his Ph.D. in economics from Nagoya University. His books include Shaping of the Post-War Federal

Reserve Policy: From New Deal to the Accord (2008).

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