Abstract

https://ssrn.com/abstract=2715399
 


 



Military Casualties and Exchange Rates during World War I: Did the Eastern Front Matter?


Pablo Duarte


University of Leipzig - Institute for Economic Policy

Marcel Freidinger


Independent

Andreas Hoffmann


University of Leipzig - Institute for Economic Policy

September 28, 2016


Abstract:     
Although ultimately decided in the West, historians have continued to emphasize the importance of the Eastern Front in understanding the complex evolution of the First World War. Using a newly compiled dataset on prisoners of war and on soldiers killed and wounded on the Eastern and Western Fronts of the war, this paper provides evidence that foreign exchange traders considered information on military casualties from both fronts in decisions to buy and sell, indicating the significance of the two-front war a hundred years ago. Prospects of losing the war were associated with currency depreciation. Casualties from the Eastern Front mattered especially in the early years of the war.

Number of Pages in PDF File: 26

Keywords: Exchange Rates, World War I, Prisoners of War, Common Factor, Net Body Count

JEL Classification: F31, N24, N44


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Date posted: January 15, 2016 ; Last revised: October 25, 2016

Suggested Citation

Duarte, Pablo and Freidinger, Marcel and Hoffmann, Andreas, Military Casualties and Exchange Rates during World War I: Did the Eastern Front Matter? (September 28, 2016). Available at SSRN: https://ssrn.com/abstract=2715399 or http://dx.doi.org/10.2139/ssrn.2715399

Contact Information

Pablo Duarte
University of Leipzig - Institute for Economic Policy ( email )
Institute for Economic Policy
Grimmaische Straße 12
Leipzig, 04109
Germany
HOME PAGE: http://www.wifa.uni-leipzig.de/iwp/team1/duarte.html
Marcel Freidinger
Independent ( email )
No Address Available
Andreas Hoffmann (Contact Author)
University of Leipzig - Institute for Economic Policy ( email )
Institute for Economic Policy
Grimmaische Str. 12
Leipzig, 04109
Germany
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