Advanced

The Panic of 1857 in the absence of a National Bank

Kostadinov, Peter LU (2015) EKHM51 20151
Department of Economic History
Abstract
Research on financial crises is important and especially relevant nowadays when the economy is slowing down globally. The crisis 2007-8 and the Great Depression of the 20th century are the longest and most severe financial calamities ever experienced and they share some eerie similarities with the Panic of 1857 – they all originate in the US but have international implications because they take place in a world of interconnected trade. Despite being similar, these crises are different in their length, severity and the way they were handled by the authorities. The two longest and most severe develop in the context of a National Bank having control over the money supply of the nation, while the shortest in the 19th century developed absent... (More)
Research on financial crises is important and especially relevant nowadays when the economy is slowing down globally. The crisis 2007-8 and the Great Depression of the 20th century are the longest and most severe financial calamities ever experienced and they share some eerie similarities with the Panic of 1857 – they all originate in the US but have international implications because they take place in a world of interconnected trade. Despite being similar, these crises are different in their length, severity and the way they were handled by the authorities. The two longest and most severe develop in the context of a National Bank having control over the money supply of the nation, while the shortest in the 19th century developed absent of a government bank. These crises contradict the conventional wisdom postulating that in the absence of centralized control over the money supply crises was a recurring theme in the 19th century US. The recessions after the panics of 1819, 1837 and 1857 suggest that lower monetary inflation and no government bank resulted in less severe crises. The crashes of the 19th century and especially the Panic of 1857, tended to cause the most pain on the people who were taking advantage of the system. (Less)
Please use this url to cite or link to this publication:
author
Kostadinov, Peter LU
supervisor
organization
course
EKHM51 20151
year
type
H1 - Master's Degree (One Year)
subject
keywords
panic of 1857, panic of 1837, panic of 1819, financial crises
language
English
id
7867333
date added to LUP
2015-09-17 09:10:04
date last changed
2015-09-17 09:10:04
@misc{7867333,
  abstract     = {Research on financial crises is important and especially relevant nowadays when the economy is slowing down globally. The crisis 2007-8 and the Great Depression of the 20th century are the longest and most severe financial calamities ever experienced and they share some eerie similarities with the Panic of 1857 – they all originate in the US but have international implications because they take place in a world of interconnected trade. Despite being similar, these crises are different in their length, severity and the way they were handled by the authorities. The two longest and most severe develop in the context of a National Bank having control over the money supply of the nation, while the shortest in the 19th century developed absent of a government bank. These crises contradict the conventional wisdom postulating that in the absence of centralized control over the money supply crises was a recurring theme in the 19th century US. The recessions after the panics of 1819, 1837 and 1857 suggest that lower monetary inflation and no government bank resulted in less severe crises. The crashes of the 19th century and especially the Panic of 1857, tended to cause the most pain on the people who were taking advantage of the system.},
  author       = {Kostadinov, Peter},
  keyword      = {panic of 1857,panic of 1837,panic of 1819,financial crises},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Panic of 1857 in the absence of a National Bank},
  year         = {2015},
}