DP4191 A Heliocentric Journey into Germany's Great Depression
|Publication Date:||January 2004|
|Keyword(s):||applied dynamic general equilibrium, germany, great depression, indeterminacy|
|Programme Areas:||International Macroeconomics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=4191|
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.