The Macroeconomics of the Great Depression: A Comparative Approach
B. Bernanke. Working Paper, 4814. National Bureau of Economic Research, (August 1994)
Abstract
Recently, research on the causes of the Great Depression has shifted from a heavy emphasis on events in the United States to a broader, more comparative approach that examines the interwar experiences of many countries simultaneously. In this lecture I survey the current state of our knowledge about the Depression from a comparative perspective. On the aggregate demand side of the economy, comparative analysis has greatly strengthened the empirical case for monetary shocks as a major driving force of the Depression; an interesting possibility suggested by this analysis is that the worldwide monetary collapse that began in 1931 may be interpreted as a jump from one Nash equilibrium to another. On the aggregate supply side, comparative empirical studies provide support for both induced financial crisis and sticky nominal wages as mechanisms by which nominal shocks had real effects. Still unresolved is why nominal wages did not adjust more quickly in the face of mass unemployment.
Description
The Macroeconomics of the Great Depression: A Comparative Approach
%0 Report
%1 NBERw4814
%A Bernanke, Ben S.
%B Working Paper Series
%D 1994
%K great_depression history macro survey monetary policy fiscal
%N 4814
%T The Macroeconomics of the Great Depression: A Comparative Approach
%U http://www.nber.org/papers/w4814
%X Recently, research on the causes of the Great Depression has shifted from a heavy emphasis on events in the United States to a broader, more comparative approach that examines the interwar experiences of many countries simultaneously. In this lecture I survey the current state of our knowledge about the Depression from a comparative perspective. On the aggregate demand side of the economy, comparative analysis has greatly strengthened the empirical case for monetary shocks as a major driving force of the Depression; an interesting possibility suggested by this analysis is that the worldwide monetary collapse that began in 1931 may be interpreted as a jump from one Nash equilibrium to another. On the aggregate supply side, comparative empirical studies provide support for both induced financial crisis and sticky nominal wages as mechanisms by which nominal shocks had real effects. Still unresolved is why nominal wages did not adjust more quickly in the face of mass unemployment.
@techreport{NBERw4814,
abstract = {Recently, research on the causes of the Great Depression has shifted from a heavy emphasis on events in the United States to a broader, more comparative approach that examines the interwar experiences of many countries simultaneously. In this lecture I survey the current state of our knowledge about the Depression from a comparative perspective. On the aggregate demand side of the economy, comparative analysis has greatly strengthened the empirical case for monetary shocks as a major driving force of the Depression; an interesting possibility suggested by this analysis is that the worldwide monetary collapse that began in 1931 may be interpreted as a jump from one Nash equilibrium to another. On the aggregate supply side, comparative empirical studies provide support for both induced financial crisis and sticky nominal wages as mechanisms by which nominal shocks had real effects. Still unresolved is why nominal wages did not adjust more quickly in the face of mass unemployment.},
added-at = {2013-03-07T19:05:08.000+0100},
author = {Bernanke, Ben S.},
biburl = {https://www.bibsonomy.org/bibtex/29aa91e386d1b99f90e175b894faeceb9/jp},
description = {The Macroeconomics of the Great Depression: A Comparative Approach},
institution = {National Bureau of Economic Research},
interhash = {aafcf8e8aeae99405471e3dce4bd2502},
intrahash = {9aa91e386d1b99f90e175b894faeceb9},
keywords = {great_depression history macro survey monetary policy fiscal},
month = {August},
number = 4814,
series = {Working Paper Series},
timestamp = {2013-03-09T22:03:08.000+0100},
title = {The Macroeconomics of the Great Depression: A Comparative Approach},
type = {Working Paper},
url = {http://www.nber.org/papers/w4814},
year = 1994
}