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In his seminal The World in Depression, 1929–1939, Charles Kindleberger argued that the Great Depression was not caused by the 1929 crash but by an interregnum between British and US hegemons.
No country large enough or mature enough was able to step into international finance as the lender and consumer of last resort.
The British economy was fading fast, and the US was not yet ready to carry the load. So economies splintered and entered a trade death spiral.
Let’s turn to today’s stock market bubble. TME asks whether it is 1995 or 2000. The full text of this article is available to MacroBusiness subscribers
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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