scholarly journals Banking crises and financial instability: Empirical and historical lessons

2021 ◽  
Vol 16 (4) ◽  
pp. 179-192
Author(s):  
Ola Honningdal Grytten
Keyword(s):  
Banking Crises ◽  
Financial Instability ◽  
Real Economy ◽  
World War ◽  
Asset Bubbles ◽  
Structural Time Series ◽  
The Great Depression ◽  
Markets And Institutions ◽  
Macroeconomic Indicators ◽  
First World

The paper examines the importance of financial instability for the development of four Norwegian banking crises. The crises are the Post First World War Crisis during the early 1920s, the mid 1920s Monetary Crisis, the Great Depression in the 1930s, and the Scandinavian Banking Crisis of 1987–1993. The paper first offers a description of the financial instability hypothesis applied by Minsky and Kindleberger, and in a recent dynamic financial crisis model. Financial instability is defined as a lack of financial markets and institutions that provide capital and liquidity at a sustainable level under stress. Financial instability basically evolves during times of overheating, overspending and extended credit granting. This is most common during significant booms. The process has devastating effects after markets have turned into a state of negative development.The paper tests the validity of the financial instability hypothesis using a quantitative structural time series model. It reveals upheaval of 10 financial and macroeconomic indicators prior to all the four crises, resulting in a state of economic overheating and asset bubble creation. This is basically explained by huge growth in debts. The overheating caused the following banking crises. Finally, the paper discusses the four crises qualitatively. Again, the conclusion is that a significant increase in money supply and debt caused overheating, asset bubbles, and thereafter, financial and banking crises, which in turn spread to other markets and industries and caused huge slumps in the real economy.

Banking Crises

2016 ◽  
pp. 438-460 ◽  
Author(s):  
Richard S. Grossman
Keyword(s):  
Banking Regulation ◽  
Banking Crises ◽  
Subprime Crisis ◽  
World War ◽  
Economic Cycles ◽  
The Great Depression ◽  
Common Causes ◽  
Economic Landscape ◽  
Second World ◽  
First World

Financial crises have been a common feature of the economic landscape for more than two centuries. The chapter defines banking crises, considers the type of costs that they impose, and outlines the most common causes of banking crises during the past 200 years. The remainder of the chapter considers five distinct historical periods: the nineteenth century, when the pattern of crises following ‘boom–bust’ economic cycles became established; the inter-war period, which was punctuated by two major sets of crises (post-First World War crisis and the Great Depression); the post-Second World War financial ‘lock-down’, which was characterized by stringent banking regulation and a complete absence of banking crises; deregulation and the return of crises in the 1970s; and the subprime crisis that emerged in 2008 and the subsequent Eurozone crisis.

Interwar Crises and Europe’s Unfinished Empires

2014 ◽  
Author(s):  
Matthew G. Stanard
Keyword(s):  
Cold War ◽  
Large Scale ◽  
Rapid Expansion ◽  
Colonial Rule ◽  
World War ◽  
Civilizing Mission ◽  
The Great Depression ◽  
Self Confidence ◽  
The First World War ◽  
First World

The period 1914–45 represents the height of European overseas empire even as seeds were sown hastening imperialism’s demise. Colonies were ‘unfinished empires’ in the process of becoming, although frequent resorts to violence in the colonies indicated the limits of Europe’s grasp. Although many emerged from the First World War dubious about European so-called civilization, the civilizing mission survived and flourished, suggesting Europe’s enduring self-confidence. Development became a dominant discourse while the Great Depression quickened colonial exploitation. Emigration and settlement on expropriated lands slowed relative to Europe’s rapid expansion in the 1800s, yet formal colonialism proceeded apace, with few exceptions. Development and exploitation led to forced or voluntary migration of colonial subjects on a large scale. Cold War ideological competition was ‘exported’ to much of the colonial world. Non-Europeans used networks to claim their rights and attack European colonial rule, and they and the colonies influenced Europe, which developed various ‘colonial cultures’.

scholarly journals De n.v. Vlaamsche Deposito- en Leenbank. Het Leenbank. Het financiële luik van de zuilvorming in dienst van het Vlaams-nationalisme

2010 ◽  
Vol 69 (3) ◽  
pp. 246-266
Author(s):  
Luc Vandeweyer
Keyword(s):  
Banking System ◽  
World War ◽  
Political Movement ◽  
Nineteen Thirties ◽  
The Great Depression ◽  
Savings And Loan ◽  
The First World War ◽  
Set Up ◽  
The 19Th Century ◽  
First World

Het financiële luik van de zuilvorming in dienst van het Vlaams-nationalisme Vanaf 1930 was er in het arrondissement Aalst een spaar- en leenbank actief die uitdrukkelijk positie koos binnen de Vlaams-nationalistische sfeer. Die ideologische profilering was zo sterk dat de bank in 1937 bereid was de partij, het Vlaamsch Nationaal Verbond (VNV), financiële middelen te bezorgen. Deze bank was een uitvloeisel van het organisatienetwerk dat in het arrondissement Aalst was opgericht vanaf het einde van de 19de eeuw en dat zich afzette tegen de katholieke partij. Deze politieke stroming stond bekend als de ‘daensisten’. Onder invloed van de collaboratie met de Duitse bezetter tijdens de Eerste Wereldoorlog gingen de daensisten grotendeels over naar het Vlaams-nationalisme. Deze kringen vonden het noodzakelijk een eigen Vlaams bankwezen te ontwikkelen. Dat was onder meer nodig om de eigen sociale organisaties en bedrijven financieel te ondersteunen. Omwille van de versnippering en onder invloed van de grote depressie van de jaren dertig kreeg dit Vlaams-nationalistische bankwezen nooit een grote omvang. ________De n.v. Vlaamsche Deposito- en Leenbank. The Financial segment of compartmentalisation in the service of Flemish NationalismFrom 1930 a savings and loan bank operated in the district of Alost, which specifically selected a position within the Flemish Nationalist atmosphere. That ideological profile was so strong that the bank was prepared to provide financial means to the party of the VNV (Vlaams Nationaal Verbond) in 1937. This bank was founded as a consequence of the organisational network that had been set up in the district of Alost from the end of the 19th century, and that set itself apart from the Catholic Party. This political movement was known as the ‘Daensists’. Under the influence of their collaboration with the German Occupiers during the First World War the ‘Daensists’ mostly transferred to the Flemish Nationalists. These groups considered that it was essential to develop their own Flemish Banking system. This was required among other things to provide financial support to their own social organisations and enterprises. Because of the fragmentation and under the influence of the Great Depression of the nineteen-thirties this Flemish Nationalist Banking system never achieved a major expansion.  

The politics of international co-operation: neutrality and crisis

2018 ◽  
Author(s):  
Mary Hilson
Keyword(s):  
Great Depression ◽  
First World War ◽  
Nordic Countries ◽  
World War ◽  
The Great Depression ◽  
The First World War ◽  
First World

This chapter explores the debates over the meanings of co-operation in the ICA and its members during the inter-war period, tracing their evolution from the end of the First World War throughout the 1920s and 1930s, as the ICA struggled to respond to economic and political challenges of the Great Depression and its aftermath. While many members staunchly defended the principle of co-operative neutrality against those who would align the movement with left or right, the crisis also highlighted the need for the co-operative movement to develop its own ideology and programme, especially if co-operation were to realise its idealistic ambitions to defend peace and democracy. The chapter examines how the ICA responded to the challenges of Bolshevism and Nazism, and considers especially the role of representatives of the Nordic countries, not only in defending political neutrality, but also shaping an idealistic vision of co-operation, based on the legacy of the Rochdale Pioneers.

The Industrialization of India

2019 ◽  
Author(s):  
Dietmar Rothermund
Keyword(s):  
Second World War ◽  
World War ◽  
The Great Depression ◽  
The First World War ◽  
Recent Developments ◽  
The 19Th Century ◽  
The Impact ◽  
Second World ◽  
First World ◽  
Historical Periods

This volume deals with the industrialisation of India by taking a closer look at ten important historical periods, such as the beginning of industrialisation in the 19th century, the impact of the First World War and the Great Depression, and the rise of state interventionism in the Second World War, etc. It places particular emphasis on the general political atmosphere in each period, which influenced the pattern of industrialisation. All relevant industries are discussed for each period, and the last chapter on the 21st century sums up all recent developments.

scholarly journals “We who have wallowed in the mud of Flanders”: First World War Veterans, Unemployment and the Development of Social Welfare in Canada, 1929-1939

2006 ◽  
Vol 11 (1) ◽  
pp. 125-149
Author(s):  
Lara Campbell
Keyword(s):  
Social Welfare ◽  
First World War ◽  
Home Front ◽  
Social Citizenship ◽  
World War ◽  
War Veterans ◽  
The Great Depression ◽  
History Of ◽  
Post War ◽  
First World

Abstract During the Great Depression, First World War veterans built on a history of post-war political activism to play an important role in the expansion of state-sponsored social welfare. Arguing that their wartime sacrifices had not been properly rewarded, veterans claimed that they were entitled to state protection from poverty and unemployment on the home front. The rhetoric of patriotism, courage, sacrifice, and duty created powerful demands for jobs, relief, and adequate pensions that should, veterans argued, be administered as a right of social citizenship and not a form of charity. At the local, provincial, and national political levels, veterans fought for compensation and recognition for their war service, and made their demands for jobs and social security a central part of emerging social policy.

Canadian Prostitution Control Between 1914 and 1970: An Exercise in Chauvinist Reasoning

1992 ◽  
Vol 7 (2) ◽  
pp. 137-156 ◽  
Author(s):  
E. Nick Larsen
Keyword(s):  
Criminal Justice ◽  
Great Depression ◽  
First World War ◽  
World War ◽  
Feminist Analysis ◽  
The Great Depression ◽  
Criminal Justice Systems ◽  
The First World War ◽  
The 1960S ◽  
First World

AbstractThis paper conducts a feminist analysis of Canadian prostitution control during the period between 1914 and 1970. The major intent of this analysis is to outline the manner in which the prostitution-related vagrancy provisions were enforced from the beginning of the First World War through to their repeal in the early 1970s. The effects of two world wars, the eugenics movement of the 1920s, the Great Depression and the liberalized sexual mores of the 1960s on prostitution control are assessed. Throughout this analysis, it is noted that Canadian prostitution control was characterized by an underlying chauvinist bias which overrode all other factors. Furthermore, it is also noted that feminists generally declined to become involved in the prostitution debate, and that many women's groups and organizations sided with the male-dominated military and criminal justice systems.

Robin Hyde

2018 ◽  
Author(s):  
Michelle Elleray
Keyword(s):  
New Zealand ◽  
Middle Class ◽  
Social Institutions ◽  
World War ◽  
The Great Depression ◽  
Class Society ◽  
The First World War ◽  
Class Hegemony ◽  
First World

This chapter explores the novels of Iris Guiver Wilkinson, who wrote as Robin Hyde. Three of her novels— Check to Your King (1936), Passport to Hell (1936), and Nor the Years Condemn (1938)—counter claims of historical absence or irrelevance by fictionalizing historical people involved in key moments in New Zealand's history, specifically the mid-nineteenth century efforts to establish New Zealand as a colony, the First World War, and the Great Depression. Meanwhile, with Wednesday's Children (1937), Hyde turns to history's antithesis, fantasy, as an alternative route to investigating New Zealand's settler culture. Hyde's five novels exhibit a recurring set of concerns: the articulation of New Zealand as a settler nation and its relationship to the international; the lives of those marginalized by respectable middle-class society; the role of social institutions in the maintenance of middle-class hegemony; and the asymmetry of opportunity, mobility, and sexual freedom for women.

The Merger Movement in Banking, 1919–1933

1985 ◽  
Vol 45 (2) ◽  
pp. 285-291 ◽  
Author(s):  
Eugene Nelson White
Keyword(s):  
Great Depression ◽  
Banking Industry ◽  
First World War ◽  
World War ◽  
The Great Depression ◽  
Statistical Series ◽  
The First World War ◽  
First World

The merger movement between the First World War and the Great Depression played an important role in the evolution of the American banking industry. The first complete statistical series on mergers is presented and the factors that contributed to the merger are analyzed.

‘Happy healthy workers are the world’s best’: factory landscapes, leisure and the model employee

2017 ◽  
Author(s):  
Helena Chance
Keyword(s):  
Late Nineteenth Century ◽  
World War ◽  
The Great Depression ◽  
Social Standards ◽  
The Social ◽  
The First World War ◽  
Working People ◽  
Industrial Standards ◽  
Second World ◽  
First World

From the late nineteenth century until the Second World War corporate gardens and parks provided opportunities for sports, music, dancing and gardening, activities that in some districts would not have been so readily accessible to working people, particularly to women and to youth. Middle class attitudes to ‘rational and respectable’ recreation shaped these activities and before the First World War, they were segregated by gender. However, recreational opportunities provided by these companies for their female and child employees were progressive by the industrial standards and, in some ways by the social standards of the day. The corporate landscapes also provided valuable land for food production in wartime and in the Great Depression.

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