Markets, Productivity, and Happiness in a Historical Perspective

Debates, plans and interventions to overcome the 1931 banking crisis in Romania and Bulgaria

Torre Dominique, Université Côte d'Azur GREDEG CNRS
Nenovsky Nikolay, Université d'Amiens

The Great Depression and especially its 1931 European phase following the failure of the Credit Anstalt in Austria, generated a massive withdrawal of foreign capital from Balkan countries and especially from Romania and Bulgaria. These movements, their consequences on Public Finance, on interest rates, on credit to the economy, added to the real effects of the recession, generated a banking crisis in Romania and Bulgaria in Summer 1931. \\ The Romanian case associates three types of protagonists around the relevant attitude to adopt in confrontation of the most important Romanian banks - and in particular Marmorosch Blank Bank - bankruptcy. In Bulgaria, the management of the crisis is more consensual but its effects are even more durable. The crisis begins affecting Credit Bank, a subsidiary of Deutsche Bank, then rapidly diffuses. The intervention of the Bulgarian National Bank allows to refund the more important banks, while other 34 were declared bankrupt and smaller ones silently disappear. With the help of various archives documents, reports of protagonists, written in Romanian, Bulgarian, and French in particular, we will examine the motivations of the different participants, the economic foundations of their respective positions and actions, and finally the effect of their respective interventions on the subsequent recovering of the banking system in both countries.


Keywords: N24, G33, E58

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