Abstract:
The understanding of emergent financial phenomena such as bank panics, though of interest for many years, has received increased attention since the crisis of 2007-8. Previous crises are often examined, seeking to gain insight into ways in which the frequency or economic damage of such events can be reduced. The Great Depression has garnered a great deal of attention, the Panic of 1893 less so. However, the Panic of 1893 and the Great Depression share several common features: They originated in the interior of the country and spread eastwards, they were double-dip depressions, and they were the two greatest peacetime economic crises in U. S. history. In contrast to the several banking panics of the Great Depression, the Panic of 1893 has been called "The Perfect Panic" due to the limited institutional intervention between agents engaged in banking.
