Network Contagion and Interbank Amplification during the Great Depression

• 成果类型: Article
• 署名作者: Mitchener, Kris James; Richardson, Gary
• 署名单位: Santa Clara University; Center for Economic & Policy Research (CEPR); Leibniz Association; Ifo Institut; National Bureau of Economic Research; University of California System; University of California Irvine
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/701034
• 发表日期: 2019
• 页码: 465-507
• 关键词: FEDERAL-RESERVE DISTRICT; Banking panics; Financial crisis; liquidity provision; MODEL; propagation; distress; failures

摘要

Interbank networks amplified the contraction in lending during the Great Depression. Panics induced banks in the hinterland to withdraw interbank deposits from Federal Reserve member banks located in reserve and central reserve cities. These correspondent banks responded by curtailing lending to businesses. Between the peak in the summer of 1929 and the banking holiday in the winter of 1933, interbank amplification reduced aggregate commercial bank lending by an estimated 15 percent.