The French Paradox: A Financial Crisis During the Golden Age of the 1960s
Business History, 56.3, 2014, pp. 391-413
29 Pages Posted: 24 Nov 2013 Last revised: 24 May 2014
Date Written: November 24, 2013
The French stock market crisis of 1961-1967 was the biggest of the twentieth century after that of the 1930s. By using the new stock index (historical CAC 40), we have been able to get a fair idea of its amplitude and detail its chronology. We consider the possibility that the crisis of the 1960s was more of a market correction after the bull run of the 1950s. The fall of the stock prices is an adjustment to the abrupt halt of the growth of dividends. Then, we investigate the potential impacts of internal political choices and of the structural characteristics of the French stock market during this period.
Keywords: Stock market, 1960s, France, stock market crisis, growth, financial structure, stock return and economic growth.
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