PartIIBPaper14

WorldDepressionintheInterWarPeriod
PaperCoordinator:DrSNSolomou
ss19@cam.ac.uk
PaperContent
Thiscourseprovidesstudentswithasurveyandanalysisoftheinterwarexperienceofanumber
ofcountriesandtheworldeconomy.IntheMichaelmastermwewillfocusonnationalcase
studies, drawing on evidence from the European economies and a number of Periphery
economies.IntheLenttermwewilldevelopthenationaldetailbyconsideringthecaseofthe
USA.ThemainfocusofthecourseintheLentTermistodevelopathematiceconomicanalysis
oftheinterwarperiod,drawingoncomparativeevidence.

Aims
Toencouragestudentstoanalysehistoricalevidence.
Toencouragestudentstouseeconomictheoryinhistoricalanalysis.
Tousehistorytoevaluateeconomictheories.
Toemphasisetostudentstheimportanceofhistoricalshocksandlongrunstructural
changesininfluencingtheeconomicperformanceofnationsandtheworld
economy.
Tounderstandtheroleofeconomicpolicybothingeneratingandsolvingeconomic
problems.

LectureCourses
MichaelmasTerm
InterwarGermany(DrCRistucciaandDrSNSolomou,8Lectures,(MichaelmasTerm)
ThePeriphery(DrNZammit,4Lectures,MichaelmasTerm)
NationalTransmissionofDepression(DrSNSolomou,4Lectures,MichaelmasTerm)

LentTerm
WorldDepressionintheInterwarPeriod:ComparativeThemes(DrSNSolomou,14
lectures(LentTerm)
InterwarBankingCrises(DrCRistuccia,4Lectures,(LentTerm)
InterwarUSA(ProfBEichengreen,8lectures,LentTerm)

ComparativeThemes
InterwarBusinessCyclesandEpisodicEconomicGrowth

InterwarBusinesscyclesandadjustmenttoshocks
Longeconomiccycles:KuznetsswingsandKondratieffwaves
GeneralPurposeTechnologyandinterwareconomicgrowth

TradePolicy

Protectionism,depressionandrecovery
Bilateralismandtradingblocs
Thetariffgrowthparadox
Nationaltradepolicyeffectsin1930s

ExchangeRateRegimesandEconomicPolicy

TheGoldStandardandtheGreatDepression
Exchangerateregimesandeconomicperformancein1920s
Devaluationandeconomicrecoveryinthe1930s
Policyregimechangein1930s

Unemployment

Heterogeneityinnationalinterwarunemployment
NationalCaseStudies
Unemploymentpersistence

BankingCrises

Bankingsystems,inflationandfinancialinstability
Twincrises,panics,andcontagion
Regulatorysolutionsininternationalcomparison

GeneralReadings
Aldcroft,D.H.andMorewood,S:TheEuropeanEconomySince1914FifthEdition
(Routledge,2013).
Eichengreen,B.:GoldenFetters:TheGoldStandardandtheGreatDepression,19191939,
(Oxford,1996).
Kindleberger,C.P.:TheWorldinDepression,192939(PelicanHistoryofWorldEconomicsin
20thCentury)
SupervisionsandExamination
YourDOSneedstomakebilateralarrangementswithDrCRistuccia,TrinityHall,for
supervisionsinthispaper.
Theexaminationpaperconsistsoffouressaysinthreehours.Pastexampapersare
availableontheFacultyswebpage.