Year: 2016
Type: report
Abstract: Interbank networks amplified the contraction in lending during the Great Depression.Banking panics induced banks in the hinterland to withdraw interbank deposits from Federal Reserve member banks located in reserve and central reserve cities.These correspondent banks responded by curtailing lending to businesses.Between the peak in the summer of 1929 and the banking holiday in the winter of 1933, interbank amplification reduced aggregate lending in the U.S. economy by an estimated 15 percent.
DOI: 10.3386/w22074
Authors: Kris James Mitchener, Gary Richardson
Institutions: Bank of Italy, Federal Reserve, National Bureau of Economic Research, Santa Clara University, Lund University, University of Colorado Boulder, University of California, Irvine, Federal Reserve Board of Governors, Federal Reserve Bank of Cleveland, London School of Economics and Political Science, Stanford University
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
Funder: Dartmouth College
OpenAlex ID: W2301035939