Two Great Trade Collapses: The Interwar Period and Great Recession Compared

Kevin Hjortshøj O’Rourke

Research output: Contribution to journalArticle

Abstract

In this paper, I offer some preliminary comparisons between the trade collapses of the Great Depression and Great Recession. The commodity composition of the two trade collapses was quite similar, but the latter collapse was much sharper due to the spread of manufacturing across the globe during the intervening period. The increasing importance of manufacturing also meant that the trade collapse was more geographically balanced in the later episode. Protectionism was much more severe during the 1930s than after 2008, and in the UK case at least helped to skew the direction of trade away from multilateralism and towards Empire. This had dangerous political consequences.

Original languageEnglish (US)
Pages (from-to)418-439
Number of pages22
JournalIMF Economic Review
Volume66
Issue number3
DOIs
StatePublished - Jan 1 2018

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics, Econometrics and Finance(all)

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