A re-assessment of central banking during 1930s Swedish financial crisis
(2022) XIX World Economic History Congress- Abstract
- During the 1930s financial crisis, Central bank of Sweden (Riksbank)
actively intervened the liquidity of banks and the market through a range of
monetary operations. The monetary policies combined with the devaluation of
currency, was regarded as a crucial factor that led to the quick and strong
recovery of Sweden. By making use of the balance sheets of the whole banking
system, this paper explores the detailed content of monetary policies before,
during and after the 1930s crisis of Sweden, and provides new evidence on the
monetary stance and policy goals. The main findings are: 1) Since early 1931
Riksbank changed its role in lend of last resort from a channel to a real supplier of
liquidity.... (More) - During the 1930s financial crisis, Central bank of Sweden (Riksbank)
actively intervened the liquidity of banks and the market through a range of
monetary operations. The monetary policies combined with the devaluation of
currency, was regarded as a crucial factor that led to the quick and strong
recovery of Sweden. By making use of the balance sheets of the whole banking
system, this paper explores the detailed content of monetary policies before,
during and after the 1930s crisis of Sweden, and provides new evidence on the
monetary stance and policy goals. The main findings are: 1) Since early 1931
Riksbank changed its role in lend of last resort from a channel to a real supplier of
liquidity. However, after leaving gold standard, Riksbank started to be cautious in
expanding money supply unless in urgent need of bailout.2) The rising in the
deposit reserve ratio of banks offset the expansionary monetary policies and thus
the actual money circulated in the market was even in contraction in most of the
time under the study. 3)The reserve and currency value, instead of domestic
monetary demand, were the main goals of monetary policies after leaving gold
standard. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/efc0b40b-b253-4d39-b9f2-3e98f523b3d6
- author
- Zhao, Liang LU
- organization
- publishing date
- 2022-07
- type
- Contribution to conference
- publication status
- published
- subject
- keywords
- 1930s Swedish financial crisis, Money supply, Monetary policy, Riksbank
- conference name
- XIX World Economic History Congress
- conference location
- Paris, France
- conference dates
- 2022-07-25 - 2022-09-29
- language
- English
- LU publication?
- yes
- id
- efc0b40b-b253-4d39-b9f2-3e98f523b3d6
- date added to LUP
- 2023-02-23 22:02:11
- date last changed
- 2023-02-28 13:50:33
@misc{efc0b40b-b253-4d39-b9f2-3e98f523b3d6,
abstract = {{During the 1930s financial crisis, Central bank of Sweden (Riksbank) <br/>actively intervened the liquidity of banks and the market through a range of <br/>monetary operations. The monetary policies combined with the devaluation of <br/>currency, was regarded as a crucial factor that led to the quick and strong <br/>recovery of Sweden. By making use of the balance sheets of the whole banking <br/>system, this paper explores the detailed content of monetary policies before, <br/>during and after the 1930s crisis of Sweden, and provides new evidence on the <br/>monetary stance and policy goals. The main findings are: 1) Since early 1931 <br/>Riksbank changed its role in lend of last resort from a channel to a real supplier of<br/>liquidity. However, after leaving gold standard, Riksbank started to be cautious in <br/>expanding money supply unless in urgent need of bailout.2) The rising in the <br/>deposit reserve ratio of banks offset the expansionary monetary policies and thus <br/>the actual money circulated in the market was even in contraction in most of the <br/>time under the study. 3)The reserve and currency value, instead of domestic <br/>monetary demand, were the main goals of monetary policies after leaving gold <br/>standard.}},
author = {{Zhao, Liang}},
keywords = {{1930s Swedish financial crisis; Money supply; Monetary policy; Riksbank}},
language = {{eng}},
title = {{A re-assessment of central banking during 1930s Swedish financial crisis}},
year = {{2022}},
}