DP4191 A Heliocentric Journey into Germany's Great Depression
| Author(s): | Mark Weder |
| Publication Date: | January 2004 |
| Keyword(s): | applied dynamic general equilibrium, germany, great depression, indeterminacy |
| JEL(s): | E32, N14 |
| 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.