Colombia during the Great Depression

Abstract

The Great Depression stopped the economic expansion that the Colombian economy experienced in the 1920s. The collapse of the world economy was transmitted to the country's financial system through two mechanisms: the dramatic reduction in the prices of coffee, the main export, and the sudden stop of international credit that fueled the economy during the 1920s. The crisis brought profound changes such as the liquidation of private mortgage banking, the reduction of commercial banking, and the emergence of public banking as the primary source of commercial and mortgage credit in the financial system.

Note: This is a draft chapter/article. The final version will be available in Encyclopedia of Financial Crises edited by Sara Hsu, forthcoming 2023, Edward Elgar Publishing Ltd. The material cannot be used for any other purpose without further permission of the publisher, and is for private use only.

Keywords: Great Depression, Colombia, Banking Crisis, Financial Crisis, Banking

JEL Classification: G21, N16, N26