Hostname: page-component-586b7cd67f-rcrh6 Total loading time: 0 Render date: 2024-11-23T20:59:18.857Z Has data issue: false hasContentIssue false
  • English
  • Français

An anatomy of financial crises in Norway, 1830–2010

Published online by Cambridge University Press:  14 February 2014

Ola Honningdal Grytten  and
Arngrim Hunnes
Ola Honningdal Grytten*
Affiliation:
Norwegian School of Economics
Arngrim Hunnes*
Affiliation:
University of Agder
*
Ola H. Grytten, Department of Economics, Norwegian School of Economics, Helleveien 30, N-5045, Bergen, Norway, [email protected]
Arngrim Hunnes (corresponding author), School of Business and Law, University of Agder, Gimlemoen 50, N-4604, Kristiansand, Norway, [email protected].
Get access Rights & Permissions [Opens in a new window]

Abstract

On the basis of a novel dataset, the article investigates the anatomy of financial crises in Norway from 1830 to 2010. First, nine significant crises are identified. Second, the article examines spillover effects on the real economy. We find a clear but not symmetric relationship. Third, the article investigates key patterns in credit and money volumes. Major financial crises typically occurred after substantial money and credit expansion, causing financial instability.

Keywords

financial crisesreal economycredit and moneyNorway

JEL classification

E51: Money Supply • Credit • Money Multipliers N14: Europe: 1913– N13: Europe: Pre-1913 E32: Business Fluctuations • Cycles
Type
Articles
Information
Financial History Review , Volume 21 , Issue 1 , April 2014 , pp. 25 - 57
Copyright
Copyright © European Association for Banking and Financial History e.V. 2014 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abbas, S. A., Belhocine, N., ElGanainy, A. and Horton, M. (2010). A Historical Public Debt Database. IMF Working Paper 10/245. International Monetary Fund.Google Scholar
Allen, F. and Gale, D. (1999). Bubbles, crises and policy. Oxford Review of Economic Policy, 15, pp. 9–18.Google Scholar
Amdam, R. P., Gran, H., Hansen, S. O. and Sogner, K. (2001). Markedsøkonomiens utvikling. Bergen: Fagbokforlaget.Google Scholar
Bergh, T., Hanisch, T., Lange, E. and Pharo, H. (1983). Norge fra u-land til i-land: Vekst og utviklingslinjer 1830–1980. Oslo: Gyldendal.Google Scholar
Bideleux, R. and Jeffries, I. (1998). A History of Eastern Europe: Crisis and Change. London: Routledge.Google Scholar
Bordo, M. D. and Meissner, C. M. (2007). Financial crises, 1880–1913: the role of foreign currency debt. In Edwards, S., Esquivel, G. and Márquez, G. (eds.), The Decline of Latin American Economies: Growth, Institutions, and Crises. Chicago: University of Chicago Press, pp. 139–94.Google Scholar
Calomiris, C. W. and Schweikart, L. (1991). The panic of 1857: origins, transmission, and containment. Journal of Economic History, 51, pp. 807–34.Google Scholar
Church, R. A. (1975). The Great Victorian Boom 1850–1873. London: Economic Society.Google Scholar
Davis, J. (2006). An improved annual chronology of US business cycles since the 1790s. Journal of Economic History, 66, pp. 103–21.Google Scholar
ECON (2009). Eiendomsmeglerbransjens boligprisstatistikk. Oslo: NEF/EMFF.Google Scholar
Eichengreen, B. (1990). Elusive Stability: Essays in the History of International Finance, 1919–1939. Cambridge: Cambridge University Press.Google Scholar
Eitrheim, Ø. (2004). Fra Peder Anker til stabilitet i pengevesenet. In Eitrheim, Ø. and Qvigstad, J. F. (eds.), Tilbakeblikk på norsk pengehistorie. Oslo: Norges Bank, pp. 1–18.Google Scholar
Eitrheim, Ø. and Erlandsen, S. (2004). House price indices for Norway 1819–2003. In Eitrheim, Ø., Klovland, J. T. and Qvigstad, J. F. (eds.), Historical Monetary Statistics for Norway. Oslo: Norges Bank, pp. 349–78.Google Scholar
Eitrheim, Ø, Gerdrup, K. and Klovland, J. T. (2004). Credit, banking and monetary developments in Norway 1819–2003. In Eitrheim, Ø., Klovland, J. T. and Qvigstad, J. F. (eds.), Historical Monetary Statistics for Norway 1819–2003. Oslo: Norges Bank, pp. 377–407.Google Scholar
Eitrheim, Ø., Grytten, O. H. and Klovland, J. T. (2007). Historical monetary statistics for Norway – some cross checks of the new data. In Eitrheim, Ø., Klovland, J. T. and Qvigstad, J. F. (eds.), Historical Monetary Statistics for Norway – Part II. Oslo: Norges Bank, pp. 385–418.Google Scholar
Eitrheim, Ø., Klovland, J. T. and Qvigstad, J. F. (2004). Historical Monetary Statistics for Norway 1819–2003. Occasional Papers. Oslo: Norges Bank.Google Scholar
Eitrheim, Ø., Klovland, J. T. and Qvigstad, J. F. (2007). Historical Monetary Statistics for Norway – Part II. Occasional Papers (vol. 38). Oslo: Norges Bank.Google Scholar
EUROSTAT and OECD. Retrieved from http://stats.oecd.org/index.aspx?queryid=350Google Scholar
FINANSDEPARTEMENTET (1994). Bankkrisen og utviklingen i den norske banknæringen. Oslo: Finansdepartementet.Google Scholar
Fischer, L. R. and Nordvik, H. W. (1986). Maritime transport and the integration of the North Atlantic Economy 1850–1914. In Fischer, W., McInnis, R. M. and Schneider, J. (eds.), The Emergence of a World Economy. Wiesbaden: KCW, pp. 526–51.Google Scholar
Gerdrup, C. (2003). Three Episodes of Financial Fragility in Norway since the 1890s. BIS Working Papers no. 142. Basel.Google Scholar
Goldsmith, R. W. (1982). The National Balance Sheet of the United States. Chicago: University of Chicago Press and National Bureau of Economic Research.Google Scholar
Grytten, O. H. (1988). Why was the great depression not so great in the Nordic countries? Journal of European Economic History, 37, pp. 369–93.Google Scholar
Grytten, O. H. (2004a). The gross domestic product for Norway 1830–2003. In Eitrheim, Ø., Klovland, J. T. and Qvigstad, J. F. (eds.), Historical Monetary Statistics for Norway 1819–2003. Oslo: Norges Bank, pp. 241–88.Google Scholar
Grytten, O. H. (2004b). A consumer price index for Norway 1516–2003. In Eitrheim, Ø., Klovland, J. T. and Qvigstad, J. F. (eds.), Historical Monetary Statistics for Norway 1819–2003. Oslo: Norges Bank, pp. 47–98.Google Scholar
Grytten, O. H. (2004c). A Norwegian consumer price index 1819–1913 in a Scandinavian perspective. European Review of Economic History, 8, pp. 61–79.Google Scholar
Grytten, O. H. (2009a). Boligboble? Empiriske indikatorer i historisk perspektiv. Magma, 12, pp. 26–39.Google Scholar
Grytten, O. H. (2009b). Boligkrakk og finanskrise i historisk perspektiv. Samfunnsøkonomen, 63, pp. 39–50.Google Scholar
Grytten, O. H. and Brautaset, C. (2001). Family households and unemployment in Norway during years of crisis: new estimates 1926–1939. History of the Family, 5, pp. 23–53.Google Scholar
Hanisch, T. J., Søilen, E. and Ecklund, G. (1999). Norsk økonomisk politikk i det 20. århundre. Kristiansand: Høyskoleforlaget.Google Scholar
Hodne, F. (1981). Norges økonomiske historie 1815–1970. Oslo: Cappelen.Google Scholar
Hodne, F. and Grytten, O. H. (2000). Norsk økonomi i det 19. århundre. Bergen: Fagbokforlaget.Google Scholar
Hodne, F. and Grytten, O. H. (2002). Norsk økonomi i det 20. århundre. Bergen: Fagbokforlaget.Google Scholar
Johnsen, B. E. (1998). Rederistrategi i endringstid: sørlandsk skipsfart fra seil til damp og motor, fra tre til jern og stål 1875–1915. University of Bergen, Bergen.Google Scholar
Jonung, L. (2008). Lessons from financial liberalisation in Scandinavia. Comparative Economic Studies, 50, pp. 564–98.Google Scholar
Kindleberger, C. P. (1986). The World in Depression: 1929–1939. Los Angeles: University of California Press.Google Scholar
Kindleberger, C. P. and Aliber, R. Z. (2005). Manias, Panics and Crashes: A History of Financial Crisis. New York: Palgrave.Google Scholar
Kindleberger, C. P. and Laffargue, J. P. (1982). Financial Crises: Theory, History and Policy. Cambridge: Cambridge University Press.Google Scholar
Klovland, J. T. (1989). A chronology of cycles in real economic activity for Norway 1867–1914. Scandinavian Economic History Review, 38, pp. 24–51.Google Scholar
Klovland, J. T. (1998). Monetary policy and business cycles in the interwar years: the Scandinavian experience. European Review of Economic History, 2, pp. 309–44.Google Scholar
Klovland, J. T. (2004a). Historical stock price indices in Norway 1914–2003. In Eitrheim, Ø., Klovland, J. T. and Qvigstad, J. F. (eds.), Historical Monetary Statistics for Norway 1819–2003. Oslo: Norges Bank, pp. 329–48.Google Scholar
Klovland, J. T. (2004b). Monetary aggregates in Norway 1819–2003. In Eitrheim, Ø., Klovland, J. T. and Qvigstad, J. F. (eds.), Historical Monetary Statistics for Norway 1819–2003. Oslo: Norges Bank, pp. 181–240.Google Scholar
Klovland, J. T. (2007). Short term interest rates in Norway 1818–2007. In Eitrheim, Ø., Klovland, J. T. and Qvigstad, J. F. (eds.), Historical Monetary Statistics for Norway – Part II. Oslo: Norges Bank, pp. 42–108.Google Scholar
Klovland, J. T. (2009). New evidence on the causes of the fluctuations in ocean freight rates in the 1850s. Explorations in Economic History, 46, pp. 266–84.Google Scholar
Knutsen, S. (2007). Kristianiakrisen 1899: En revurdering av den historiske litteraturens årsaksforklaringer. Oslo: University of Oslo.Google Scholar
Knutsen, S. and Ecklund, G. (2000). Vern mot kriser: norsk finanstilsyn gjennom 100 år. Bergen: Fagbokforlaget.Google Scholar
Knutsen, S., Lange, E. and Nordvik, H. W. (1998). Mellom næringsliv og politikk. Kreditkassen i vekst og kriser 1918–1998. Oslo: Universitetsforlaget.Google Scholar
Larsen, E. R. and Mjølhus, J. (2009). Finanskrise!: lånefest, boligboble – og dagen derpå. Oslo: Gyldendal.Google Scholar
Lie, E. and Venneslan, C. (2010). Over evne: Finansdepartementet 1965–1992. Oslo: Pax.Google Scholar
Maddison, A. (2006). The World Economy: Historical statistics. Paris: OECD.Google Scholar
Merriman, J. (1996). A History of Modern Europe: From the Renaissance to the Present. New York: W. W. Norton.Google Scholar
Minsky, H. (1982). The financial-instability hypothesis: capitalist processes and the behavior of the economy. In Kindleberger, C. P. and Laffargue, J. P. (eds.), Financial Crises: Theory, History and Policy. Cambridge: Cambridge University Press, pp. 13–39.Google Scholar
Musson, A. E. (1959). The Great Depression in Britain 1873–1896: a reappraisal. Journal of Economic History, 19, pp. 199–228.Google Scholar
Øksendal, L. F. (2007). The impact of the Scandinavian Monetary Union on financial market integration. Financial History Review, 14, pp. 125–48.CrossRefGoogle Scholar
Parliament Proposition (1890) no. 43/1890. Ministry of Domestic Affairs.Google Scholar
Romer, C. D. (1988). World War I and the postwar depression: a reinterpretation based on alternative estimates of GNP. Journal of Monetary Economics, 22, pp. 91–115.Google Scholar
Rygg, N. (1918). Norges Banks historie, vol 1. Kristiania: Norges Bank.Google Scholar
Seip, J. A. (1957). Saint Simon, Credit Mobilier og Den norske Creditbank. Historisk tidsskrift, 36, pp. 513–38.Google Scholar
Sejersted, F. (1993). Demokratisk kapitalisme. Oslo: Universitetsforlaget.Google Scholar
Sorkin, A. R. (2009). Too Big to Fail: Inside the Battle to Save Wall Street. New York and London: Allen Lane.Google Scholar
Steigum, E. (2009). The boom and bust cycle in Norway. In Jonung, L., Kiander, J. and Vartia, P. (eds.), The Great Financial Crisis in Finland and Sweden. Cheltenham and Northampton: Edward Elgar, pp. 202–44.Google Scholar
Søbye, E. (1999). Kristianiakrakket 1899. Samfunnsspeilet, 1.Google Scholar
Søilen, E. (2002). Hvorfor gikk det galt? Statens rolle i utviklingen av norsk næringsliv etter 1945. Oslo: Gyldendal.Google Scholar
Tocqueville, A. DE (1970 [1893]). Recollections: The French Revolution of 1848. New York: Doubleday.Google Scholar
Tornell, A. and Westermann, F. (2005). Boom Bust Cycles and Financial Liberalization. Cambridge, MA: MIT Press.Google Scholar
Zandi, M. (2009). Financial Shock: A 360 Degree Look at the Subprime Mortgage Implosion and How to Avoid the Next Financial Crisis. Upper Saddle River, NY: FT Press.Google Scholar