Systemic Risk, Missing Gold Flows and the Panic of 1907

34 Pages Posted: 29 May 2010

See all articles by Berry K. Wilson

Berry K. Wilson

Pace University - Department of Finance and Economics

Mary Tone Rodgers

SUNY-Oswego

Date Written: May 18, 2010

Abstract

This paper investigates the potential systemic risks posed to the U.S. securities markets by the banking crisis during the Panic of 1907. Past studies of 1907 have focused almost exclusively on the banking crisis. Our study examines the mechanisms that minimized the spill over of the banking crisis, and allowed the U.S. capital markets to remain not only open, but also relatively liquid, during the crisis. We show that contractual arrangements in the securities markets helped to minimize spill over effects, and that global arbitrage of U.S. securities allowed the U.S. to draw significant liquidity from European markets in times of crisis.

Keywords: systemic risk, spill over, bearer bonds, gold clauses, securities arbitrage, Panic of 1907, gold flows

Suggested Citation

Wilson, Berry K. and Rodgers, Mary Tone, Systemic Risk, Missing Gold Flows and the Panic of 1907 (May 18, 2010). Available at SSRN: https://ssrn.com/abstract=1617468 or http://dx.doi.org/10.2139/ssrn.1617468

Berry K. Wilson

Pace University - Department of Finance and Economics ( email )

Lubin School of Business
New York, NY 10038
United States

Mary Tone Rodgers (Contact Author)

SUNY-Oswego

7060 State Route 104
Oswego, NY 13126
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
79
Abstract Views
489
rank
303,380
PlumX Metrics