The mother of all sudden stops: capital flows and reversals in Europe, 1919–32

Olivier Accominotti, Barry Eichengreen
Published Online:
14 Oct 2015
Volume/Issue No:
Volume 69 Issue 2

Additional Options

New data documenting European bond issues in major financial centres from 1919 to 1932 show that conditions in international capital markets and not just in borrowing countries are important for explaining the surge and reversal in capital flows. In particular, the sharp increase in stock market volatility in the major financial centres at the end of the 1920s figured importantly in the decline in foreign lending. This article draws parallels with Europe after 2008.

© Economic History Society 2015

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