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Oxford Economic Papers Advance Access originally published online on December 21, 2005
Oxford Economic Papers 2006 58(2):288-316; doi:10.1093/oep/gpi046
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© Oxford University Press 2006 All rights reserved

A heliocentric journey into Germany's Great Depression

Mark Weder

School of Economics, University of Adelaide, Adelaide, SA 5005, Australia, Humboldt University, and CEPR;

Correspondence: e-mail: mark.weder{at}adelaide.edu.au

The paper finds empirical evidence on the ripple effect of sunspots on the interwar German economy. It identifies a sequence of negative shocks to expectations for the 1927–32 period. The artificial economy predicts the 1928–32 depression and a long boom from 1933 onwards. Overall, a tangible fraction of interwar output volatility is attributed to sunspots.

Key Words: JEL classification: E32 • N14


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