A Heliocentric Journey into Germany’s Great Depression

Abstract

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 to 1932 period. The artificial economy predicts the 1928-1932 depression and a long boom from 1933 onwards. Overall, a tangible fraction of interwar output volatility is attributed for by sunspots.

Description

Keywords

Germany, Great Depression, Indeterminacy, Applied Dynamic General Equilibrium

Dewey Decimal Classification

330 Wirtschaft

Citation

Weder, Mark.(2003). A Heliocentric Journey into Germany’s Great Depression. Sonderforschungsbereich 373: Quantification and Simulation of Economic Processes. , 2003,50. 10.18452/3654