The Paper finds empirical evidence on the ripple effect of sunspots on the interwar German economy. It identifies a sequence of negative shocks to expectations for the 1927-32 period. The artificial economy predicts the 1928-32 depression and a long boom from 1933 onwards. Overall, a tangible fraction of interwar output volatility is attributed for by sunspots.
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Citation
Weder, M (2004), ‘DP4191 A Heliocentric Journey into Germany's Great Depression‘, CEPR Discussion Paper No. 4191. CEPR Press, Paris & London. https://cepr.org/publications/dp4191
