Financial collapse: A lesson from the Great Depression

Journal of Economic Theory

Volumn 107, Issue 2, 2002, Pages 159-190

  Cooper, Russell ^a   Corbae, Dean ^b  

^a Boston University   (United States)

^b UNIVERSITY OF TEXAS AT AUSTIN   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0036926232     PISSN: 00220531     EISSN: None     Source Type: Journal    
DOI: 10.1006/jeth.2001.2951     Document Type: Article

References (35)

1. C. Azariadis and S. Chakraborty, Asset price volatility in a nonconvex general equilibrium model, Econ. Theory 12 (1998), 649-665.
2. C. Azariadis and B. Smith, Financial intermediation and regime switching in business cycles, Amer. Econ. Rev. 88 (1998), 516-536.
3. A. Berger and L. Mester, "What Explains the Dramatic Changes in Cost and Profit Performances of the U.S. Banking Industry," Working Paper 1999-13, Board of Governors of the Federal Reserve System, 1999.
4. B. Bernanke, Nonmonetary effects of the financial crisis in the propagation of the Great Depression, Amer. Econ. Rev. 73 (1983), 257-276.
5. B. Bernanke and M. Gertler, Agency cost, net worth and business fluctuations, Amer. Econ. Rev. 79 (1989), 14-31.
6. B. Bernanke and M. Gertler, Financial fragility and economic performance, Quart. J. Econ. 105 (1990), 87-114.
7. J. Boyd, R. Chang, and B. Smith, Moral hazard under commercial and universal banking, J. Money, Credit, Banking 30 (1998), 426-468.
8. J. Boyd and E. Prescott, Financial intermediary coalitions, J. Econ. Theory 38 (1986), 211-232.
9. J. Boyd, P. Gomis, S. Kwak, and B. Smith, A user's guide to banking crises, mimeo, 2000.
10. J. Bryant, The paradox of thrift, liquidity preference and animal spirits, Econometrica 55 (1987), 1231-1236.
11. B. Champ, B. Smith, and S. Williamson, Currency elasticity and banking panics: Theory and evidence, Canad. J. Econ. 29 (1996), 828-864.
12. R. Chang and A. Velasco, Financial fragility and the exchange rate regime, J. Econ. Theory 92 (2000), 1-34.
13. S. Chatterjee, R. Cooper, and B. Ravikumar, Strategic complementarity in business formation: Aggregate fluctuations and sunspot equilibria, Rev. Econ. Stud. 60 (1993), 795-811.
14. S. Chatterjee and D. Corbae, Endogenous market participation and the general equilibrium value of money, J. Polit. Econ. 100 (1992), 615-46.
15. P. Coe, Financial crisis and New Deal financial reform during the Great Depression, University of British Columbia, mimeo, 1995.
16. H. Cole and L. Ohanian, The Great Depression in the United States from the neoclassical perspective, Fed. Res. Bank Minneapolis Quart. Rev. 23 (1999), 2-24.
17. R. Cooper, "Coordination Games: Complementarities and Macroeconomics," Cambridge University Press, Cambridge, UK, 1999.
18. R. Cooper and J. Ejarque, Financial intermediation and the Great Depression: A multiple equilibrium interpretation, Carnegie-Rochester Conf. Series Public Policy 43 (1995), 285-323.
19. R. Cooper and A. John, Coordination coordination failures in Keynesian models, Quart. J. Econ. 103 (1988), 441-63.
20. D. Diamond and P. Dybvig, Bank runs, deposit insurance and liquidity, J. Polit. Econ. 91 (1983), 401-19.
21. I. Fisher, The debt-deflation theory of great depressions, Econometrica 1 (1933), 337-57.
22. M. Friedman and A. Schwartz, "A Monetary History of the United States," 1867-1960, Princeton University Press, Princeton, NJ, 1963.
23. J. Hamilton, Monetary factors in the Great Depression, J. Monet. Econ. 19 (1987), 145-69.
24. J. Hamilton, A new approach to the economic analysis of nonstationary time series and the business cycle, Econometrica 57 (1989), 357-84.
25. R. Hodrick, N. Kocherlakota, and D. Lucas, The variability of velocity in cash-in-advance models, J. Polit. Econ. 99 (1991), 358-84.
26. J. Hughes, and L. Mester, Bank capitalization and cost: Evidence of scale economies in risk management and signaling, Rev. Econ. Statist. 80 (1998), 314-25.
27. C. Kindleberger, "Manias Panics and Crashes: A History of Financial Crises," Wiley, New York, 1996.
28. R. Lagunoff and S. Schreft, A model of financial fragility, mimeo, July 1998.
29. H. Moulin, Serial cost sharing of excludable public goods, Rev. Econ. Stud. 61 (1994), 305-25.
30. B. Smith, Monetary policy, banking crises, and the Friedman rule, mimeo, February 2001.
31. A. Tarski, A lattice-theoretical fixpoint theorem and its applications, Pacific J. Math. 5 (1955), 285-308.
32. R. Townsend, Intermediation with costly bilateral exchange, Rev. Econ. Stud. 55 (1978), 417-425.
33. P. Weil, Increasing returns and animal spirits, Amer. Econ. Rev. 79 (1989), 889-894.
34. S. Williamson, Increasing returns to scale in financial intermediation and the non-neutrality of government policy, Rev. Econ. Stud. 53 (1986), 863-875.
35. S. Williamson, Financial intermediation, business failures and real business cycles, J. Polit. Econ. 95 (1987), 1196-1216.