Back to the Future: Present-Day Lessons from the Financial Panic of 1890

30 Pages Posted: 23 Apr 2010

See all articles by Sebastian M. Saiegh

Sebastian M. Saiegh

University of California, San Diego (UCSD) - Department of Political Science

Date Written: April 22, 2010

Abstract

The main goal of this paper is to debunk a series of myths regarding the proximate causes of the so-called Great Recession of 2008-09. I focus on the Baring crisis of 1890, that involved Great Britain and Argentina. The factors behind the 1890 crisis were virtually identical to those surrounding the recent financial crisis. These included low interest rates; mortgage-backed securities; collateralized debt obligations; counter-party risk; bad regulation; and government guarantees. I therefore draw on this historical experience to examine whether some of the proposed explanations of the recent financial crisis hold any water.

Keywords: Great Recession, Baring Crisis, Argentina

JEL Classification: F30, G14, N23, N26

Suggested Citation

Saiegh, Sebastian M., Back to the Future: Present-Day Lessons from the Financial Panic of 1890 (April 22, 2010). Available at SSRN: https://ssrn.com/abstract=1594423 or http://dx.doi.org/10.2139/ssrn.1594423

Sebastian M. Saiegh (Contact Author)

University of California, San Diego (UCSD) - Department of Political Science ( email )

9500 Gilman Drive
Code 0521
La Jolla, CA 92093-0521
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
188
Abstract Views
1,335
Rank
290,592
PlumX Metrics