From Great Depression to Great Credit Crisis: Similarities, Differences and Lessons

  1. Georges De Ménil,
  2. Richard Portes and
  3. Hans-Werner Sinn
  1. Miguel Almunia1,2,
  2. Agustín Bénétrix1,2,
  3. Barry Eichengreen1,2,
  4. Kevin H. O'Rourke1,2,
  5. Gisela Rua1,2,
  6. Silvana Tenreyro3 and
  7. Fabrizio Perri4

Published Online: 2 SEP 2012

DOI: 10.1002/9781444390261.ch1

Economic Policy 62

Economic Policy 62

How to Cite

Almunia, M., Bénétrix, A., Eichengreen, B., O'Rourke, K. H., Rua, G., Tenreyro, S. and Perri, F. (2010) From Great Depression to Great Credit Crisis: Similarities, Differences and Lessons, in Economic Policy 62 (eds G. De Ménil, R. Portes and H.-W. Sinn), John Wiley & Sons, Ltd, Chichester, UK. doi: 10.1002/9781444390261.ch1

Author Information

  1. 1

    University of California, Berkeley, USA

  2. 2

    Trinity College, Dublin, Ireland

  3. 3

    London School of Economics, UK

  4. 4

    University of Minnesota, Federal Reserve Bank of Minneapolis, NBER and CEPR, USA

Publication History

  1. Published Online: 2 SEP 2012
  2. Published Print: 21 MAY 2010

ISBN Information

Print ISBN: 9781405197007

Online ISBN: 9781444390261



  • from the Great Depression to the Great Credit Crisis, parallels/differences;
  • monetary/fiscal responses of the 1930s, light on current policies;
  • employing vector autoregressions, instrumental variables, and qualitative evidence;
  • fiscal multipliers in episodes of financial crisis, light on debate;
  • decline in manufacture in the peak of 2008, as akin in 1929;
  • global stock markets, falling even faster than the Great Depression;
  • the Great Credit Crisis, ‘surpassed’ the Great Depression destroying World trade;
  • real estate boom, declining lending/securitization, global imbalances adding fire;
  • monetary policy in a near-zero-interest-rate liquidity-trap 2009, unlike 1930s;
  • current crisis and the exchange rate regime, shaping policy responses


This chapter contains sections titled:

  • Introduction

  • The Depression and Credit Crisis Compared

  • The Policy Response

  • The Impact of Policy in the 1930s

  • Conclusions

  • References