Year: 2012
Type: report
Abstract: Most American financial crises of the postbellum gold-standard era were caused by fluctuations in the cotton harvest due to exogenous factors such as weather.The transmission channel ran through export revenues and financial markets under the pre-1914 monetary regime.A poor cotton harvest depressed export revenues and reduced international demand for American assets, which depressed American stock prices, drained deposits from money-center banks and precipitated a business-cycle downturn -conditions that bred financial crises.The crises caused by cotton harvests could have been prevented by an American central bank, even under gold-standard constraints.
DOI: 10.3386/w18616
Authors: Christopher Hanes, Paul Rhode
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3125546645