Bank Lending and Deposit Crunches during the Great Depression / Kris James Mitchener, Gary Richardson.

Format:

Book

Author/Creator:

Mitchener, Kris James.

Contributor:

Richardson, Gary.

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w32783.

NBER working paper series no. w32783

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2024.

Summary:

Bank distress was a defining feature of the Great Depression in the United States. Most banks, however, weathered the storm and remained in operation throughout the contraction. We show that surviving banks cut lending when depositors withdrew funds en masse during panics. This panic-induced decline in lending explains about one-third of the reduction in aggregate commercial bank lending between 1929 and 1932, more than twice as much as attributed to the failure of banks.

Notes:

August 2024.

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