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THE IMPACT OF THE FIRST WORLD WAR ON THE SPANISH MONEY MARKET: NEW EVIDENCE FROM MONEY MARKET AND BANK LENDING INTEREST RATES, 1900–1935
- Source :
- Revista de Historia Económica / Journal of Iberian and Latin American Economic History. 40:67-98
- Publication Year :
- 2020
- Publisher :
- Cambridge University Press (CUP), 2020.
-
Abstract
- This paper provides a new index of money market and bank lending interest rates in Spain for 1900–1935. New archival evidence reveals a structural change in market interest ratesvis-à-visthe official rates charged by theBanco de España(BdE). Before 1914, the BdE rate operated as a ceiling to market rates. The outbreak of the First World War caused market rates to soar and the BdE rate started operating as a floor, as bank liquidity started depending on the BdE. This was accompanied by new banking legislation introduced in 1921, which changed the collateral framework through which the BdE lent to banks. The resulting interest rate index illustrates the persistent impact of financial deglobalisation caused by the outbreak of the War.
- Subjects :
- Economics and Econometrics
History
Money market
060106 history of social sciences
media_common.quotation_subject
05 social sciences
06 humanities and the arts
Monetary economics
First world war
Interest rate
0502 economics and business
Economics
0601 history and archaeology
050207 economics
media_common
Subjects
Details
- ISSN :
- 20413335 and 02126109
- Volume :
- 40
- Database :
- OpenAIRE
- Journal :
- Revista de Historia Económica / Journal of Iberian and Latin American Economic History
- Accession number :
- edsair.doi...........61915ccd8cc02e0aef297037d03bf91a