1932
0
  1. Home
  2. A-Z Publications
  3. Annual Review of Financial Economics
  4. Volume 15, 2023
  5. Article

Annual Review of Financial Economics

Volume 15, 2023

Banking Crises in Historical Perspective

Abstract

This article surveys the recent empirical literature on historical banking crises, defined as events taking place before 1980. Advances in data collection and identification have provided new insights into the causes and consequences of crises both immediately and over the long run. We highlight three overarching threads that emerge from the literature: First, leverage in the financial system is a systematic precursor to crises; second, crises have sizable negative effects on the real economy; and third, government interventions can ameliorate these effects. Contrasting historical episodes reveals that the process of crisis formation and evolution varies significantly across time and space. Thus, we also highlight specific institutions, regulations, and historical contexts that give rise to these divergent experiences. We conclude by identifying important gaps in the literature and discussing avenues for future research.

Keyword(s): banking crises, financial stability, historical lessons, intermediation, JEL E44, JEL E58, JEL G01, JEL G21, JEL N10, JEL N20, lender of last resort, leverage
Loading

Article metrics loading...

/content/journals/10.1146/annurev-financial-100121-114859
2023-11-01
2024-04-28
Loading full text...

Full text loading...

/deliver/fulltext/financial/15/1/annurev-financial-100121-114859.html?itemId=/content/journals/10.1146/annurev-financial-100121-114859&mimeType=html&fmt=ahah

Literature Cited

  1. Allen F, Babus A, Carletti E. 2009. Financial crises: theory and evidence. Annu. Rev. Financ. Econ. 1:97–116
     [Google Scholar]
  2. Almeida H, Campello M, Laranjeira B, Weisbenner S. 2012. Corporate debt maturity and the real effects of the 2007 credit crisis. Crit. Finance Rev. 1:13–58
     [Google Scholar]
  3. Almunia M, Benetrix A, Eichengreen B, O'Rourke KH, Rua G. 2010. From Great Depression to great credit crisis: similarities, differences and lessons. Econ. Policy 25:62219–65
     [Google Scholar]
  4. Anderson H, Paddrik M, Wang JJ. 2019. Bank networks and systemic risk: evidence from the national banking acts. Am. Econ. Rev. 109:93125–61
     [Google Scholar]
  5. Anderson H, Richardson G, Yang B. 2022. Deposit insurance and depositor monitoring: quasi-experimental evidence from the creation of the Federal Deposit Insurance Corporation. J. Money Credit Bank. 55:2–3441–64
     [Google Scholar]
  6. Anson M, Bholat D, Kang M, Thomas R. 2017. The Bank of England as lender of last resort: new historical evidence from daily transactional data. SSRN Work. Pap. 3071650
  7. Babina T, Bernstein A, Mezzanotti F. 2020. Crisis innovation. NBER Work. Pap. 27851
  8. Bagehot W. 1873. Lombard Street: A Description of the Money Market. London: Henry S. King and Co.
  9. Baron M, Verner E, Xiong W. 2020. Banking crises without panics. Q. J. Econ. 136:151–113
     [Google Scholar]
  10. Barro RJ, Ursúa JF. 2012. Rare macroeconomic disasters. Annu. Rev. Econ. 4:83–109
     [Google Scholar]
  11. Baubeau P, Monnet E, Riva A, Ungaro S. 2021. Flight-to-safety and the credit crunch: a new history of the banking crises in France during the Great Depression. Econ. Hist. Rev. 74:1223–50
     [Google Scholar]
  12. Benmelech E, Bergman N, Seru A. 2021. Financing labor. Rev. Financ. 25:51365–93
     [Google Scholar]
  13. Benmelech E, Bergman NK. 2018. Credit market freezes. NBER Macroecon. Annu. 32:493–526
     [Google Scholar]
  14. Benmelech E, Frydman C, Papanikolaou D. 2019. Financial frictions and employment during the Great Depression. J. Financ. Econ. 133:3541–63
     [Google Scholar]
  15. Bernanke B, James H. 1991. The gold standard, deflation, and financial crisis in the Great Depression: an international comparison. Financial Markets and Financial Crises, ed. RG Hubbard 33–68. Chicago: Univ. Chicago Press
     [Google Scholar]
  16. Bernanke BS. 1983. Nonmonetary effects of the financial crisis in the propagation of the Great Depression. Am. Econ. Rev. 73:3257–76
     [Google Scholar]
  17. Bernanke BS. 2018. The real effects of disrupted credit: evidence from the global financial crisis. Brookings Pap. Econ. Act. Fall:251–322
     [Google Scholar]
  18. Bernstein A, Hughson E, Weidenmier MD. 2010. Identifying the effects of a lender of last resort on financial markets: lessons from the founding of the Fed. J. Financ. Econ. 98:140–53
     [Google Scholar]
  19. Bignon V, Flandreau M, Ugolini S. 2012. Bagehot for beginners: the making of lender-of-last-resort operations in the mid-nineteenth century. Econ. Hist. Rev. 65:2580–608
     [Google Scholar]
  20. Boissay F, Collard F, Smets F. 2016. Booms and banking crises. J. Political Econ. 124:2489–538
     [Google Scholar]
  21. Bordalo P, Gennaioli N, Shleifer A. 2018. Diagnostic expectations and credit cycles. J. Finance 73:1199–227
     [Google Scholar]
  22. Bordo M, Eichengreen B, Klingebiel D, Martinez-Peria MS, Rose AK. 2001. Is the crisis problem growing more severe?. Econ. Policy 16:3253–82
     [Google Scholar]
  23. Bordo MD, Meissner CM. 2011. Foreign capital, financial crises and incomes in the first era of globalization. Eur. Rev. Econ. Hist. 15:161–91
     [Google Scholar]
  24. Bordo MD, Meissner CM. 2016. Fiscal and financial crises. Handbook of Macroeconomics, Vol. 2 JB Taylor, H Uhlig 355–412. Amsterdam: Elsevier
     [Google Scholar]
  25. Bordo MD, Rockoff H, Redish A. 1994. The U.S. banking system from a northern exposure: stability versus efficiency. J. Econ. Hist. 54:2325–41
     [Google Scholar]
  26. Borio CE, White WR. 2004. Whither monetary and financial stability? The implications of evolving policy regimes. Bank Int. Settl. Work. Pap.147
  27. Bottero M, Lenzu S, Mezzanotti F. 2020. Sovereign debt exposure and the bank lending channel: impact on credit supply and the real economy. J. Int. Econ. 126:103328
     [Google Scholar]
  28. Bouscasse P. 2022. Canst thou beggar thy neighbour? Evidence from the 1930s. Work. Pap. Columbia Univ. New York, NY:
  29. Braggion F, Dwarkasing N, Moore L. 2017. Nothing special about banks: competition and bank lending in Britain, 1885–1925. Rev. Financ. Stud. 30:103502–37
     [Google Scholar]
  30. Braggion F, Manconi A, Zhu H. 2020. Credit and social unrest: evidence from 1930s China. J. Financ. Econ. 138:2295–315
     [Google Scholar]
  31. Calomiris C, Gorton G. 1991. The origins of banking panics: models, facts, and bank regulation. Financial Markets and Financial Crises RG Hubbard 109–74. Chicago: Univ. Chicago Press
     [Google Scholar]
  32. Calomiris CW, Jaremski M. 2016. Deposit insurance: theory and facts. Annu. Rev. Financ. Econ. 8:97–120
     [Google Scholar]
  33. Calomiris CW, Jaremski M. 2019. Stealing deposits: deposit insurance, risk-taking, and the removal of market discipline in early 20th-century banks. J. Finance 74:2711–54
     [Google Scholar]
  34. Calomiris CW, Jaremski M, Wheelock DC. 2022. Interbank connections, contagion and bank distress in the Great Depression. J. Financ. Int. 51:100899
     [Google Scholar]
  35. Calomiris CW, Kahn C. 1991. The role of demandable debt in structuring optimal banking arrangements. Am. Econ. Rev. 81:3497–513
     [Google Scholar]
  36. Calomiris CW, Mason JR. 1997. Contagion and bank failures during the Great Depression: the June 1932 Chicago banking panic. Am. Econ. Rev. 87:5863–83
     [Google Scholar]
  37. Calomiris CW, Mason JR. 2003. Consequences of bank distress during the Great Depression. Am. Econ. Rev. 93:3937–47
     [Google Scholar]
  38. Carlson M. 2004. Are branch banks better survivors? Evidence from the Depression era. Econ. Inq. 42:1111–26
     [Google Scholar]
  39. Carlson M. 2005. Causes of bank suspensions in the panic of 1893. Explor. Econ. Hist. 42:156–80
     [Google Scholar]
  40. Carlson M. 2010. Alternatives for distressed banks during the Great Depression. J. Money Credit Bank. 42:2/3421–41
     [Google Scholar]
  41. Carlson M, Correia S, Luck S. 2022. The effects of banking competition on growth and financial stability: evidence from the National Banking era. J. Political Econ. 130:2462–520
     [Google Scholar]
  42. Carlson M, Mitchener K. 2009. Branch banking as a device for discipline: competition and bank survivorship during the Great Depression. J. Political Econ. 117:2165–210
     [Google Scholar]
  43. Carlson M, Mitchener KJ. 2006. Branch banking, bank competition, and financial stability. J. Money Credit Bank. 38:51293–328
     [Google Scholar]
  44. Carlson M, Rose JD. 2015. Credit availability and the collapse of the banking sector in the 1930s. J. Money Credit Bank. 47:71239–71
     [Google Scholar]
  45. Carlson M, Rose J. 2016. Can a bank run be stopped? Government guarantees and the run on Continental Illinois. Bank Int. Settl. Work. Pap. 554
  46. Cerra V, Saxena SC. 2008. Growth dynamics: the myth of economic recovery. Am. Econ. Rev. 98:1439–57
     [Google Scholar]
  47. Cetorelli N, Goldberg LS. 2012. Banking globalization and monetary transmission. J. Finance 67:51811–43
     [Google Scholar]
  48. Chari VV, Jagannathan R. 1988. Banking panics, information, and rational expectations equilibrium. J. Finance 43:3749–61
     [Google Scholar]
  49. Chen Q, Koch C, Sharma P, Richardson G. 2020. Payments crises and consequences. NBER Work. Pap.27733
  50. Cohen J, Hachem K, Richardson G. 2021. Relationship lending and the Great Depression. Rev. Econ. Stat. 103:3505–20
     [Google Scholar]
  51. Colvin CL, de Jong A, Fliers PT. 2015. Predicting the past: understanding the causes of bank distress in the Netherlands in the 1920s. Explor. Econ. Hist. 55:97–121
     [Google Scholar]
  52. Danielsson J, Valenzuela M, Zer I. 2018. Learning from history: volatility and financial crises. Rev. Financ. Stud. 31:72774–805
     [Google Scholar]
  53. Davison LK, Ramirez CD. 2014. Local banking panics of the 1920s: identification and determinants. J. Monet. Econ. 66:164–77
     [Google Scholar]
  54. Demirgüç-Kunt A, Huizinga H. 2004. Market discipline and deposit insurance. J. Monet. Econ. 51:2375–99
     [Google Scholar]
  55. Devereux MB, Yu C. 2019. International financial integration and crisis contagion. Rev. Econ. Stud. 87:31174–212
     [Google Scholar]
  56. Diamond DW, Dybvig PH. 1983. Bank runs, deposit insurance, and liquidity. J. Political Econ. 91:3401–19
     [Google Scholar]
  57. Doerr S, Gissler S, Peydró JL, Voth HJ. 2022. Financial crises and political radicalization: how failing banks paved Hitler's path to power. J. Finance 77:63339–72
     [Google Scholar]
  58. Duca J. 2013. The money market meltdown of the Great Depression. J. Money Credit Bank. 45:2–3493–504
     [Google Scholar]
  59. Eggertsson GB, Krugman P. 2012. Debt, deleveraging, and the liquidity trap: a Fisher-Minsky-Koo approach. Q. J. Econ. 127:31469–513
     [Google Scholar]
  60. Eichengreen B. 1996. Golden Fetters: The Gold Standard and the Great Depression, 1919–1939 Oxford, UK: Oxford Univ. Press
  61. Eichengreen B, Sachs J. 1985. Exchange rates and economic recovery in the 1930s. J. Econ. Hist. 45:4925–46
     [Google Scholar]
  62. Ferguson N, Kornejew M, Schmelzing P, Schularick M. 2023. The safety net: central bank balance sheets and financial crises, 1587–2020 Work. Pap. Hoover Inst., Stanford Univ. CA:
  63. Field AJ. 2003. The most technologically progressive decade of the century. Am. Econ. Rev. 93:41399–1413
     [Google Scholar]
  64. Friedman M, Schwartz AJ. 1963. A Monetary History of the United States, 1867–1960 Princeton, NJ: Princeton Univ. Press
  65. Frydman C, Hilt E. 2017. Investment banks as corporate monitors in the early twentieth century United States. Am. Econ. Rev. 107:71938–70
     [Google Scholar]
  66. Frydman C, Hilt E, Zhou LY. 2015. Economic effects of runs on early “shadow banks”: trust companies and the impact of the Panic of 1907. J. Political Econ. 123:4902–40
     [Google Scholar]
  67. Funke M, Schularick M, Trebesch C. 2016. Going to extremes: politics after financial crises, 1870–2014. Eur. Econ. Rev. 88:227–60
     [Google Scholar]
  68. Giesecke K, Longstaff FA, Schaefer S, Strebulaev IA. 2014. Macroeconomic effects of corporate default crisis: a long-term perspective. J. Financ. Econ. 111:2297–310
     [Google Scholar]
  69. Gorton G. 1985. Bank suspension of convertibility. J. Monet. Econ. 15:2177–93
     [Google Scholar]
  70. Gorton G. 2017. The history and economics of safe assets. Annu. Rev. Econ. 9:547–86
     [Google Scholar]
  71. Gorton G. 2018. Financial crises. Annu. Rev. Financ. Econ. 10:43–58
     [Google Scholar]
  72. Gorton G, Metrick A. 2012. Getting up to speed on the financial crisis: a one-weekend-reader's guide. J. Econ. Lit. 50:1128–50
     [Google Scholar]
  73. Gorton GB, Tallman EW. 2018. Fighting Financial Crises: Learning from the Past Chicago: Univ. Chicago Press
  74. Gray DF. 2009. Modeling financial crises and sovereign risks. Annu. Rev. Financ. Econ. 1:117–44
     [Google Scholar]
  75. Greenwood R, Hanson SG, Shleifer A, Sorensen JA. 2022. Predictable financial crises. J. Finance 77:2863–921
     [Google Scholar]
  76. Grodecka-Messi A, Kenny S, Ögren A. 2021. Predictors of bank distress: the 1907 crisis in Sweden. Explor. Econ. Hist. 80:101380
     [Google Scholar]
  77. Grossman RS. 1994. The shoe that didn't drop: explaining banking stability during the Great Depression. J. Econ. Hist. 54:3654–82
     [Google Scholar]
  78. Hansen ME, Ziebarth NL. 2017. Credit relationships and business bankruptcy during the Great Depression. Am. Econ. J. Macroecon. 9:2228–55
     [Google Scholar]
  79. Hautcoeur PC, Riva A, White EN. 2014. Floating a “lifeboat”: The Banque de France and the crisis of 1889. J. Monet. Econ. 65:104–19
     [Google Scholar]
  80. Hsieh CT, Romer CD. 2006. Was the Federal Reserve constrained by the Gold Standard during the Great Depression? Evidence from the 1932 open market purchase program. J. Econ. Hist. 66:1140–76
     [Google Scholar]
  81. Indarte S. 2021. Bad news bankers: underwriter reputation and contagion in pre-1914 sovereign debt markets SSRN Work. Pap. 2931821
  82. Iyer R, Puri M. 2012. Understanding bank runs: the importance of depositor-bank relationships and networks. Am. Econ. Rev. 102:41414–45
     [Google Scholar]
  83. Jalil AJ. 2014. Monetary intervention really did mitigate banking panics during the Great Depression: evidence along the Atlanta Federal Reserve district border. J. Econ. Hist. 74:1259–73
     [Google Scholar]
  84. Jalil AJ. 2015. A new history of banking panics in the United States, 1825–1929: Construction and implications. Am. Econ. J. Macroecon. 7:3295–330
     [Google Scholar]
  85. Janas P. 2022. Public goods under financial distress: evidence from cities in the Great Depression. Work. Pap. Calif. Inst. Tech. Pasadena, CA:
  86. Jaremski M. 2010. Free bank failures: risky bonds versus undiversified portfolios. J. Money Credit Bank. 42:81565–87
     [Google Scholar]
  87. Jaremski MS, Wheelock DC. 2019. The founding of the Federal Reserve, the Great Depression and the evolution of the U.S. interbank network NBER Work. Pap. 26034
  88. Jayaratne J, Strahan PE. 1998. Entry restrictions, industry evolution, and dynamic efficiency: evidence from commercial banking. J. Law Econ. 41:1239–74
     [Google Scholar]
  89. Jiang EX, Matvos G, Piskorski T, Seru A. 2023. Monetary tightening and US bank fragility in 2023: Mark-to-market losses and uninsured depositor runs? NBER Work. Pap. 31048
  90. Jordà Ò, Richter B, Schularick M, Taylor AM. 2021. Bank capital redux: solvency, liquidity, and crisis. Rev. Econ. Stud. 88:1260–86
     [Google Scholar]
  91. Jordà Ò, Schularick M, Taylor AM. 2013. When credit bites back. J. Money Credit Bank. 45:S23–28
     [Google Scholar]
  92. Jordà Ò, Schularick M, Taylor AM. 2015. Leveraged bubbles. J. Monet. Econ. 76:S1–S20
     [Google Scholar]
  93. Jordà Ò, Schularick M, Taylor AM. 2016. Sovereigns versus banks: credit, crises, and consequences. J. Eur. Econ. Assoc. 14:145–79
     [Google Scholar]
  94. Jordà Ò, Schularick M, Taylor AM. 2017. Macrofinancial history and the new business cycle facts. NBER Macroecon. Annu. 31:1213–63
     [Google Scholar]
  95. Kelly B, Papanikolaou D, Seru A, Taddy M. 2021. Measuring technological innovation over the long run. Am. Econ. Rev. Insights 3:3303–20
     [Google Scholar]
  96. Kelly M, Ó Gráda C. 2000. Market contagion: evidence from the panics of 1854 and 1857. Am. Econ. Rev. 90:51110–24
     [Google Scholar]
  97. Kenny S, Lennard J, Turner JD. 2021. The macroeconomic effects of banking crises: evidence from the United Kingdom, 1750–1938. Explor. Econ. Hist. 79:101357
     [Google Scholar]
  98. Khwaja AI, Mian A. 2008. Tracing the impact of bank liquidity shocks: evidence from an emerging market. Am. Econ. Rev. 98:41413–42
     [Google Scholar]
  99. Kindleberger CP. 1978. Manias, Panics and Crashes: A History of Banking Crises London: Palgrave Macmillan UK
  100. Kindleberger CP. 1990. Historical Economics: Art or Science? Oakland, CA: Univ. Calif. Press
     [Google Scholar]
  101. Koudijs P, Voth HJ. 2016. Leverage and beliefs: personal experience and risk-taking in margin lending. Am. Econ. Rev. 106:113367–400
     [Google Scholar]
  102. Krishnamurthy A, Muir T. 2017. How credit cycles across a financial crisis. NBER Work. Pap. 23850
  103. Kumhof M, Rancière R, Winant P. 2015. Inequality, leverage, and crises. Am. Econ. Rev. 105:31217–45
     [Google Scholar]
  104. Laeven L. 2011. Banking crises: a review. Annu. Rev. Financ. Econ. 3:17–40
     [Google Scholar]
  105. Laeven L, Valencia F. 2020. Systemic banking crises database II. IMF Econ. Rev. 68:2307–61
     [Google Scholar]
  106. Li L, Li Y, Macchiavelli M, Zhou XA. 2021. Liquidity restrictions, runs, and central bank interventions: evidence from money market funds. Rev. Financ. Stud. 34:115402–37
     [Google Scholar]
  107. Malmendier U, Nagel S. 2011. Depression babies: Do macroeconomic experiences affect risk taking?. Q. J. Econ. 126:1373–416
     [Google Scholar]
  108. Martinez Peria MS, Schmukler SL. 2001. Do depositors punish banks for bad behavior? Market discipline, deposit insurance, and banking crises. J. Finance 56:31029–51
     [Google Scholar]
  109. Metrick A, Schmelzing P. 2021. Banking-crisis interventions, 1257–2019. NBER Work. Pap 29281
  110. Meyer J, Reinhart CM, Trebesch C. 2022. Sovereign bonds since Waterloo. Q. J. Econ. 137:31615–80
     [Google Scholar]
  111. Minsky HP. 1986. Stabilizing an Unstable Economy New Haven, CT: Yale Univ. Press
  112. Mitchener KJ. 2005. Bank supervision, regulation, and instability during the Great Depression. J. Econ. Hist. 65:1152–85
     [Google Scholar]
  113. Mitchener KJ, Richardson G. 2019. Network contagion and interbank amplification during the Great Depression. J. Political Econ. 127:2465–507
     [Google Scholar]
  114. Mitchener KJ, Weidenmier M. 2008. The Baring Crisis and the great Latin American meltdown of the 1890s. J. Econ. Hist. 68:2462–500
     [Google Scholar]
  115. Monnet E, Velde FR 2021. Money, banking, and old-school historical economics. The Handbook of Historical Economics A Bisin, G Federico 335–64. Amsterdam: Elsevier
     [Google Scholar]
  116. Muir T. 2017. Financial crises and risk premia. Q. J. Econ. 132:2765–809
     [Google Scholar]
  117. Müller K, Verner E. 2021. Credit allocation and macroeconomic fluctuations. SSRN Work. Pap. 3781981
  118. Nakamura E, Steinsson J, Barro R, Ursúa J. 2013. Crises and recoveries in an empirical model of consumption disasters. Am. Econ. J. Macroecon. 5:335–74
     [Google Scholar]
  119. Nanda R, Nicholas T. 2014. Did bank distress stifle innovation during the Great Depression?. J. Financ. Econ. 114:2273–92
     [Google Scholar]
  120. Ó Gráda C, White EN. 2003. The panics of 1854 and 1857: a view from the emigrant industrial savings bank. J. Econ. Hist. 63:1213–40
     [Google Scholar]
  121. Olmstead-Rumsey J. 2019. Country banks and the panic of 1825. Work. Pap. London Sch. Econ.
  122. Payne J, Uren L. 2014. Economic policy and the Great Depression in a small open economy. J. Money Credit Bank. 46:2/3347–70
     [Google Scholar]
  123. Peek J, Rosengren ES. 2000. Collateral damage: effects of the Japanese bank crisis on real activity in the United States. Am. Econ. Rev. 90:130–45
     [Google Scholar]
  124. Peek J, Rosengren E. 2016. Credit supply disruptions: from credit crunches to financial crisis. Annu. Rev. Financ. Econ. 8:81–95
     [Google Scholar]
  125. Quincy SL. 2021. “Loans for the little fellow”: credit, crisis, and recovery in the Great Depression. SSRN Work. Pap. 3503590
  126. Quinn S, Roberds W. 2015. Responding to a shadow banking crisis: the lessons of 1763. J. Money Credit Bank. 47:61149–76
     [Google Scholar]
  127. Rajan R, Ramcharan R. 2016. Local financial capacity and asset values: evidence from bank failures. J. Financ. Econ. 120:2229–51
     [Google Scholar]
  128. Reinhart CM, Reinhart VR. 2009. Capital flow bonanzas: an encompassing view of the past and present. NBER International Seminar on Macroeconomics, Vol. 59–62. Chicago: Univ. Chicago Press
     [Google Scholar]
  129. Reinhart CM, Rogoff KS. 2009. This Time Is Different Princeton, NJ: Princeton Univ. Press
  130. Reinhart CM, Rogoff KS. 2011. From financial crash to debt crisis. Am. Econ. Rev. 101:51676–706
     [Google Scholar]
  131. Reinhart CM, Rogoff KS. 2013. Banking crises: an equal opportunity menace. J. Bank. Finance 37:114557–73
     [Google Scholar]
  132. Richardson G, Troost W. 2009. Monetary intervention mitigated banking panics during the Great Depression: quasi-experimental evidence from a Federal Reserve district border, 1929–1933. J. Political Econ. 117:61031–73
     [Google Scholar]
  133. Richter B, Schularick M, Wachtel P. 2021. When to lean against the wind. J. Money Credit Bank. 53:15–39
     [Google Scholar]
  134. Rockoff H. 2022. O.M.W. Sprague (the man who “wrote the book” on financial crises) meets the Great Depression. Jahrbuch Wirtschaftsgeschichte/Econ. Hist. Yearb. 63:2527–57
     [Google Scholar]
  135. Romer CD. 1990. The Great Crash and the onset of the Great Depression. Q. J. Econ. 105:3597–624
     [Google Scholar]
  136. Romer CD. 1992. What ended the Great Depression?. J. Econ. Hist. 52:4757–84
     [Google Scholar]
  137. Romer CD, Romer DH. 2017. New evidence on the aftermath of financial crises in advanced countries. Am. Econ. Rev. 107:103072–118
     [Google Scholar]
  138. Romer CD, Romer DH. 2018. Phillips lecture—Why some times are different: macroeconomic policy and the aftermath of financial crises. Economica 85:3371–40
     [Google Scholar]
  139. Schnabel I, Shin HS. 2004. Liquidity and contagion: the crisis of 1763. J. Eur. Econ. Assoc. 2:6929–68
     [Google Scholar]
  140. Schnabl P. 2012. The international transmission of bank liquidity shocks: evidence from an emerging market. J. Finance 67:3897–932
     [Google Scholar]
  141. Schularick M, Taylor AM. 2012. Credit booms gone bust: monetary policy, leverage cycles, and financial crises, 1870–2008. Am. Econ. Rev. 102:21029–61
     [Google Scholar]
  142. Sprague OMW. 1910. Proposals for strengthening the national banking system. II. Q. J. Econ. 24:4634–59
     [Google Scholar]
  143. Sufi A, Taylor AM 2022. Financial crises: a survey. Handbook of International Economics: International Macroeconomics, Vol. 6 G Gopinath, E Helpman, K Rogoff 291–340. Amsterdam: Elsevier
     [Google Scholar]
  144. Taylor AM. 2015. Credit, financial stability, and the macroeconomy. Annu. Rev. Econ. 7:309–39
     [Google Scholar]
  145. Temin P. 1976. Did Monetary Forces Cause the Great Depression? New York: Norton
  146. Ursúa JF. 2011. Essays in macroeconomics and asset pricing: long-run risks, disasters, and trends. PhD Thesis Harvard Univ. Cambridge, MA:
     [Google Scholar]
  147. Wheelock DC, Wilson PW. 1995. Explaining bank failures: deposit insurance, regulation, and efficiency. Rev. Econ. Stat. 77:4689–700
     [Google Scholar]
  148. White EN. 2016. How to prevent a banking panic: the Barings Crisis of 1890. Work. Pap. Rutgers Univ. New Brunswick, NJ:
  149. Wicker E. 2000. Banking Panics of the Gilded Age. Studies in Macroeconomic History Series Cambridge, UK: Cambridge Univ. Press
  150. Xu C. 2022. Reshaping global trade: the immediate and long-run effects of bank failures. Q. J. Econ. 137:42107–61
     [Google Scholar]
  151. Xu C, Yang H. 2022. Real effects of supplying safe private money. NBER Work. Pap. 30060
  152. Ziebarth NL. 2013. Identifying the effects of bank failures from a natural experiment in Mississippi during the Great Depression. Am. Econ. J. Macroecon. 5:181–101
     [Google Scholar]
/content/journals/10.1146/annurev-financial-100121-114859
Loading
Banking Crises in Historical Perspective
Annual Review of Financial Economics 15, 265 (2023); https://doi.org/10.1146/annurev-financial-100121-114859
/content/journals/10.1146/annurev-financial-100121-114859
/content/journals/10.1146/annurev-financial-100121-114859
Loading

Data & Media loading...

  • Article Type: Review Article

Most Cited Most Cited RSS feed

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error