Made in Germany: The German Currency Crisis of July, 1931

67 Pages Posted: 21 Feb 2001

See all articles by Thomas Ferguson

Thomas Ferguson

University of Massachusetts Boston - Department of Political Science

Peter Temin

Massachusetts Institute of Technology (MIT) - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: February 2001

Abstract

The Great Depression reached a turning point in the currency crises of 1931 and the German banking and currency crisis was a critical event whose causes are still debated. We demonstrate in this paper that the crisis was primarily domestic in origin; that it was a currency crisis rather than a banking crisis; and that the failure was more political than economic. We clarify the arguments involved as we present this view. German banks failed in 1931, but the problem was not primarily with them. Instead, the crisis was a failure of political will in a time of turmoil.

Keywords: Great Depression, Germany Currency Crisis, German banking, Germany

JEL Classification: N14, E32

Suggested Citation

Ferguson, Thomas and Temin, Peter, Made in Germany: The German Currency Crisis of July, 1931 (February 2001). MIT Dept. of Economics Working Paper No. 01-07. Available at SSRN: https://ssrn.com/abstract=260993 or http://dx.doi.org/10.2139/ssrn.260993

Thomas Ferguson

University of Massachusetts Boston - Department of Political Science ( email )

Boston, MA 02125
United States
617-265-7173 (Fax)

Peter Temin (Contact Author)

Massachusetts Institute of Technology (MIT) - Department of Economics ( email )

50 Memorial Drive
E52-280a
Cambridge, MA 02142
United States
617-253-3126 (Phone)
617-253-6915 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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