Hostname: page-component-78c5997874-8bhkd Total loading time: 0 Render date: 2024-11-17T19:41:27.777Z Has data issue: false hasContentIssue false
  • English
  • Français

Economic Recovery from the Argentine Great Depression: Institutions, Expectations, and the Change of Macroeconomic Regime

Published online by Cambridge University Press:  03 March 2009

Gerardo Della Paolera  and
Alan M. Taylor
Gerardo Della Paolera
Affiliation:
Rector and Professor of Economics at Universidad Torcuato Di Tella. Address: Miñ ones 2159/77, Capital Federal, Buenos Aires 1428, Argentina. Telephone: (+54)114-784-3386. Fax: (+54) 114-784-0089. Email: gerardo@utdt.edu.ar.
Alan M. Taylor
Affiliation:
Associate Professor at the University of California at Davis and a Faculty Research Fellow at the National Bureau of Economic Research. Address: Department of Economics, University of California, One Shields Avenue, Davis, CA 95616. Telephone: 530-752-1572. Fax: 530-752-9382. Email: amtaylor@ucdavis.edu.
Get access Rights & Permissions [Opens in a new window]

Abstract

Did macroconomic interventions make any contribution to Argentina's revovery from the Great Depression? Macroeconomic policy deviated from gold-standard orthodoxy after the final suspension of convertibility in 1929. Fiscal policy was conservative. Monetary policy became unorthodox after 1931, when the Caja de conversión began rediscounting to sterilize gold outflows and avoid deflation. This change predated the creation of the central bank in 1935. A wider literature links the interwar depression in the core to flaws in the gold standard, and active monetary policy to escape from defaltion and slump; our work extends this idea to the periphery.

Type
Articles
Information
The Journal of Economic History , Volume 59 , Issue 3 , September 1999 , pp. 567 - 599
Copyright
Copyright © The Economic History Association 1999

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Baiocco, Pedro J.La economia bancaria argentiana. Buenos Aires: Universidad de Buenos Aires, 1937.Google Scholar
Bemanke, Ben, and James, Harold. “The Gold Standard, Deflation, and Financial Crisis in the Great Depression: An International Comparison.” In financial Markets and Financial Crises, edited by Hubbard, R. Glenn, 33–68. Chicago: University of Chicago Press, 1991.Google Scholar
Bordo, Michael D., and Kydland, Finn E.. “The Gold Standard as a Rule: An Essay in Exploration.” Explorations in Economic History 32, no. 4 (10 1995): 423–64.CrossRefGoogle Scholar
Michael D., Bordo, and Rockoff, Hugh. “The gold Standard as a “Good Housekeeping Seal of Approval.’” this JOURNAL 56, no. 2 (1996): 389–428.Google Scholar
Brown, E. Cary. “Fiscal Policy in the thirties: A Reappraisal.” American Economic Review 46 (12 1956): 857–79.Google Scholar
Campa, José Manuel. “Exchange Rates and Economic Recovery in the 1930s: An Extension to Latin America.” this JOURNAL 50, no. 3 (1990): 677–82.Google Scholar
della Paolera, Gerardo. “Experimentos monetarios y bancarios en Argentina: 1861–1930” Revista de Historia Econömica 12 (Fall 1994): 539–90.CrossRefGoogle Scholar
della Paolera, Gerardo, and Ortíz, Javier. “Dinero, intermediaciön financiera y nivel de actividad en 110 aňos de historia econömica argentiana.” Documentos de Trabajo no. 42, Universidad Torcuato Di Tella, 12 1995.Google Scholar
della Paolera, Gerardo, and Taylor, Alan M.. “Finance and Development in an Emerging Market: Argentian in the Interwar Period.” In Latin America and the World Economy in the Nineteenth and Twentieth Centuries, edited by Coatsworth, John H. and Taylor, Alan M., 139–70. Cambridge, MA: Harvard University Press, 1998.Google Scholar
Díaz Alejandro, Carlos F. “Latin America in the 1930s.” In Latin America in the 1930s: The Role of the Periphery in World Crisis, edited by Thorp, Rosemary, 17–49. New York: St. Martin's Press, 1984.CrossRefGoogle Scholar
Díaz Alejandro, Carlos F. “Stories of the 1930s for the 1980s.” In financial Policies and the World Capital Market: The Problem of Latin American Countries, edited by Armella, Pedro Aspe, Dornbusch, Rudiger and Obstfeld, Maurice, 5–40.Chicago: University of chicago Press, 1983. The Economist, various dates.Google Scholar
Eichengreen, Barry J.Golden Fetters: The Gold Standard and The great Depression, 1919–1939. Oxford: Oxford University Press, 1992.Google Scholar
Eichengreen, Barry J. “The Origins and Nature of the Great Slump Revisited.” Economic History Review 45 (05 1992): 212–39.CrossRefGoogle Scholar
Eichengreen, Barry J., and Portes, Richard. “After the Deluge: Default, Negotiation, and Readjustment during the Interwar Year.” In The International Debt Crisis in Historical Perspective, edited by Eichengreen, Barry J. and Lindert, Peter H., 12–47. Cambridge, MA: MIT Press, 1989.Google Scholar
Eichengreen, Barry J., and Sachs, Jeffrey D.. “Exchange Rates and Economic Recovery in the 1930s.” this JOURNAL 45 (12 1985): 925–46.Google Scholar
Eichengreen, Barry J. and Temin, Peter. “The Gold Standard and the Great Depression.” Working Paper Series, No. 6060, National Bureau of Economic Research, 06 1997.Google Scholar
Fisher, Irving. “The Debt-Deflation Theory of Great Depressions.” Econometrica 1, no. 4 (1933): 337–57.CrossRefGoogle Scholar
Fishlow, Albert. “Conditionality and Willingness to Pay: Some Parallels from the 1890s.” In The International Debt Crisis in Historical Perspective, edited by Eichengreen, Barry J. and Lindert, Peter H., 86–105. Cambridge: MIT Press, 1989.Google Scholar
Gesell, Silvio. “La anemia monetaria.” Buenos Aires, 1898 [1909].Google Scholar
Gesell, Silvio. “La plétora monetaria.” Buenos Aires, 1909.Google Scholar
Jorgensen, Erika, and Sachs, Jeffrey D.. “Default and Renegotiation of Latin American Foreign Bonds in the Interwar Period.” In The International Debt Crisis in Historical Perspective, edited by Eichengreen, Barry J. and Lindert, Peter H., 48–85. Cambridge, MA: MIT Press, 1989.Google Scholar
Kindleberger, Charles P.The World in Depression, 1929–1939. Revised ed. Berkeley: University of California Press, 1986.Google Scholar
Magariños de Mello, Mateo J.Diálogos con Raú Prebisch. Banco Nacional de Comercio Exterior: Fondo de Cultura Económica, 1991.Google Scholar
Mishkin, Frederic S. “Is the Fisher Effect for Real? A Reexamination of the Relationship Between Inflation and Interest Rates.” Journal of Monetary Economics 30, no. 2 (1992): 195–215.CrossRefGoogle Scholar
Mitchell, Brain R.International Historical Statistics: Europe, 1750–1988. New York: Stockton Press, 1992.CrossRefGoogle Scholar
Mitchell, Brain R.Internatinal Historical Statistics: The Americas, 1750–1988. New York: Stockton Press, 1993.CrossRefGoogle Scholar
Obstfeld, Maurice, and Taylor, Alan M.. “The Great Depression as a Watershed: International Capital Mobaility in the Long Run.” In The Defining Moment: The Great Depression and the American Economy in the Twentieth Century, edited by Bordo, Michael D., Goldin, Claudia D. and White, Eugene N., 353–402. Chicago: University of Chicago Press, 1998.Google Scholar
Ortiz, Javier, “Essays on the Early History of Latin Ameircan Central Banking.” Ph.D. diss., University of California at Los Angeles, 1993.Google Scholar
Peppers, Larry C. “Full-Employment Surplus Analysis and Structural Change: The 1930s.” Explorations in Economic History 10 (Winter 1973): 197–210.CrossRefGoogle Scholar
Prebisch, Raú. “Anotaciones sobre nuestro Medio Circulante.” Revista de Ciencias Económicas (05—06 1922).Review of the River Plate [Buenos Aires], various dates. Revista de Economia Argentina, various dates.Google Scholar
Romer, Christina D. “What Ended the Great Depression?” this JOURNAL 52 (12 1992): 757–84.Google Scholar
Salama, Elias. “El orden monetario Caja de Conversion-Banco de la Nación.” Documentos de Seminario, No. 27, Universidad Torcuato Di Tella, 10 1997.Google Scholar
Sargent, Thomas J. “The Ends of Four Big Inflations.” In Inflation: Causes and Effects, edited by Hall, Robert E., 41–98. Chicago: University of Chicago Press, 1982.Google Scholar
Sargent, Thomas J. “Reaganomics and Credibility.” In Rational Expectations and Inflation, edited by Sargent, Thomas J., 19–39. New York: Harper & Row, 1986.Google Scholar
Taylor, Alan M. “External Dependence, Demographic Burdens and Argentine Economic Decline After the Belleépoque.” this JOURNAL 52 (12 1992): 907–36.Google Scholar
Taylor, Alan M. “Tres fases del crecimiento económico argentino.” Revista de Historia Económica 12 (Otoño 1994): 649–683.CrossRefGoogle Scholar
Taylor, Alan M. “On the Costs of Inward-Looking Development: Price Distortions, Growth, and Divergence in Latin America.” this JOURNAL 58 (03 1998): 1–28.Google Scholar
Temin, Peter. Lessons from The Great Depression. Cambridge, MA: MIT Press, 1989.Google Scholar
Temin, Peter, and Wigmore, Barrie A.. “The End of One Big Deflation.” Explorations in Economic History 27 (10 1990): 483–502.CrossRefGoogle Scholar
Tomz, Michael. “Do Creditors Ignore History? Reputation in International Capital Markets.” Photocopy. Harward Univerity, Department of Government, 09 1998.Google Scholar
Twomey, Michael J. “The 1930s Depression in Latin America: A Macro Analysis.” Explorarions in Economic History 2 (07 1983): 221–47.CrossRefGoogle Scholar