Document Type
Article
Publication Date
2-3-2020
Journal / Book Title
Journal of Reviews of Global Economic
Abstract
The Panic of 1907 is often known as the Panic that initiated the development of the Federal Reserve System (Bordo, 1985). The Panic of 1907 was "The beginning of the end of unregulated capital markets and banking system without the lender of the last resort in the United States." (Fohlin, Gehrig and Haas, 2015, page 2). Numerous causes lead to the Panic of 1907 including: shadow banking, the San Francisco earthquake and fire, stock price manipulation, seasonal agriculture fluctuations, an outflow of gold, and higher interest rates. This paper reviews the primary literature on these causes, and how they led to the Panic of 1907 and the subsequent regulations culminating in the Federal Reserve Bank.
DOI
10.6000/1929-7092.2020.09.03
MSU Digital Commons Citation
Ramjerdi, Maria H., "Review of the Causes of 1907 Panic and Aftermath" (2020). Department of Economics Faculty Scholarship and Creative Works. 70.
https://digitalcommons.montclair.edu/economics-facpubs/70
Rights
This is an open access article licensed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0/) which permits unrestricted, non-commercial use, distribution and reproduction in any medium, provided the work is properly cited.
Published Citation
Ramjerdi, M. H. (2020). Review of the Causes of 1907 Panic and Aftermath. Journal of Reviews on Global Economics, 9, 18–22. https://doi.org/10.6000/1929-7092.2020.09.03