Posted: 29 Feb 2008
The paper finds empirical evidence on the ripple effect of sunspots on the interwar German economy. It identifies a sequence of negative shocks to expectations for the 1927-32 period. The artificial economy predicts the 1928-32 depression and a long boom from 1933 onwards. Overall, a tangible fraction of interwar output volatility is attributed to sunspots.
JEL Classification: E32, N14
Suggested Citation: Suggested Citation
Weder, Mark, A Heliocentric Journey into Germany's Great Depression. Oxford Economic Papers, Vol. 58, No. 2, pp. 288-316, 2006. Available at SSRN: https://ssrn.com/abstract=916858