Prosperity and depression in the European economy and during interwar years (1913-1950) : an introduction.

We survey aggregate growth in a sample of 27 European countries during the interwar period. We discuss the available data, possible explanations for a slowdown in growth rates and test the explanatory power of several hypotheses put forward in the literature.Aggregate Growth; Interwar Period; Europe;

Nationalism, Myth and Reinterpretation of History: The Neglected Case of Interwar Yugoslavia

This article discusses and challenges some popular myths and perceptions about interwar Yugoslavia in post-socialist (and post-Yugoslav) Serbia. These include discourses that blame ‘others’ – ‘treacherous’ Croats and other non-Serbs, the ‘perfidious’ west, especially Britain – and that are also self-critical, of Serbs’ ‘naivety’ as exemplified in their choosing to create Yugoslavia at the end of the FirstWorldWar, and of, later, embracing communism. The article also offers a reassessment of the interwar period, often neglected by scholars of former Yugoslavia

Monetary Sovereignty, Exchange Rates, and Capital Controls: The Trilemma in the Interwar period

The interwar period was marked by the end of the classical gold standard regime and new levels of macroeconomic disorder in the world economy. The interwar disorder often is linked to policies inconsistent with the constraint of the open-economy trilemma the inability of policymakers simultaneously to pursue a fixed exchange rate, open capital markets, and autonomous monetary policy. The first two objectives were linchpins of the pre-1914 order. As increasingly democratic polities faced pressures to engage in domestic macroeconomic management, however, either currency pegs or freedom of capital movements had to yield. This historical analytic narrative is compelling with significant ramifications for today's world, if true but empirically controversial. We apply theory and empirics to the interwar data and find strong support for the logic of the trilemma. Thus, an inability to pursue consistent policies in a rapidly changing political and economic environment appears central to an understanding of the interwar crises, and the same constraints still apply today.

Yugoslavism between the World Wars: indecisive nation-building

This article examines Yugoslav national programs of ruling political elites and its concrete implementation in education policy in interwar Yugoslavia. It is argued that at the beginning of the period Yugoslavism was not inherently incompatible with or subordinate to Serbian, Croatian or to a lesser degree Slovenian national ideas. However, the concrete ways in which Yugoslavism was formulated and adopted by ruling elites discredited the Yugoslav national idea and resulted in increasing delineation and polarization in the continuum of national ideas available in Yugoslavia. Throughout the three consecutive periods of political rule under scrutiny, ruling elites failed to reach a wider consensus regarding the Yugoslav national idea or to create a framework within which a constructive elaboration of Yugoslav national identity could take place. By the end of the interwar period, the Yugoslav national idea had become linked exclusively to conservatism, centralism, authoritarianism and, for non-Serbian elites at least, Serbian hegemony. Other national ideas gained significance as ideas providing viable alternatives for the regime’s Yugoslavism

Comparison of Interwar and Postwar Business Cycles: Monetarism Reconsidered

When monthly data on production, prices, and the money stock are interpreted, via a vector autoregression, as generated by dynamic responses to "surprises" in each of the variables, a remarkable similarity in dynamics between interwar and postwar business cycles emerges, though the size of the "surprises" is much larger in the interwar period. Furthermore, the money stock emerges as firmly causally prior, in Granger's sense, in both periods and accounts for a substantial fraction of variance in production in both periods. When a short interest rate is added to the vector autoregression, the remarkable similarity in dynamics between periods persists, but the central role of the money stock surprises evaporates for the postwar period. While there are potential monetarist explanations for such an observation, none of them seem to fit comfortably the estimated dynamics. A non-monetarist explanation of the dynamics, based on the role of expectations in investment behavior, seems to fit the estimated dynamics better. That this explanation, which is consistent with a passive role for money, could account for so much of the observed postwar relation between money stock and income may raise doubts about the monetarist interpretation even of the interwar data.

Efficiency, distortions and factor utilization during the interwar period

In this paper, we analyze the International Great Depression in the US and Western Europe using the business cycle accounting method a la Chari, Kehoe and McGrattan (CKM 2007). We extend the business cycle accounting model by incorporating endogenous factor utilization which turns out to be an important transmission mechanism of the disturbances in the economy. Our main Öndings are that in the U.S. labor wedges account for roughly half of the drop in output while efficiency and investment wedges each account for a quarter of it during the 1929-1933 period while in Western Europe labor wedges account for more than one-third of the output drop and e¢ ciency, government and investment wedges are responsible for the remaining during the 1929-1932 period. Our Öndings are consistent with several strands of existing descriptive and empirical literature on the International Great Depressio

Financial Intermediation and The Great Depression: A Multiple Equilibrium Interpretation

This paper explores the behavior of the U.S. economy during the interwar period from the perspective of a model in which the existence of non-convexities in the intermediation process gives rise to a multiplicity of equilibria. The resulting indeterminancy is resolved through a sunspot process which leads to endogenous fluctuations in aggregate economic activity. From this perspective, the Depression period is represented as a regime shift associated with a financial crisis. Our model economy has properties which are broadly consistent with observations over the interwar period. Contrary to observation, the model predicts a negative correlation of consumption and investment as well as a highly volatile capital stock. Our model of financial crisis reproduces many aspects of the Great Depression though the model predicts a much sharper fall in investment than is observed in the data. Modifications to our model (adding durable goods and a capacity utilization choice) do not overcome these deficiencies.

Fellowship, Service, and the \u27Spirit of Adventure\u27: The Religious Society of Friends and the Outdoors Movement in Britain, C. 1900-1950

This article considers the involvement of members of the Religious Society of Friends in various manifestations of the outdoors movement in early twentieth-century Britain. It examines the Edwardian \u27Quaker tramps\u27 and their role in the \u27Quaker renaissance\u27, and goes on to consider the influence of Friends in organisations such as the Holiday Fellowship and the Youth Hostels Association, as well as interwar Quaker mountaineers. It argues that, while the outdoor activities of the Quaker renaissance were essentially internal to the Religious Society of Friends, a wider conception of social service took Quakers beyond the boundaries of the Society in the interwar period, resulting in a more profound influence on the outdoors movement. These activities of Friends were associated with the promotion of the \u27social gospel\u27, and represented a significant strand of Quaker service in the first half of the twentieth century

The decline of the adult school movement between the wars

This article considers the decline of the adult school movement, one of the largest voluntary movements in the history of adult education, and critically examines some of the reasons that have been used to explain it. It explores a number of features of the decline, using records of selected adult schools and adult school unions, and discussing variations by region and gender. The article argues that adult schools pursued a strategy of 'resistance' to secularisation, and that they increasingly concentrated on their core religious activities rather than attempting to compete with secular adult education providers. As a result, whereas the late nineteenth and early twentieth century had seen a rapid turnover of adult scholars, by the 1930s they were increasingly restricted to a committed core of members, dominated by older men and, especially, women. Reasons for the decline include the availability of alternative leisure pursuits, a lack of unity within the movement, and the association of the adult schools with unfashionable styles of Victorian philanthropy