Publication Type
Magazine Article
Version
acceptedVersion
Publication Date
1-2018
Abstract
In the fall of 1930, the U.S. economy was on a path to recovery following a contraction that occurred the year before. However, worries about the state of the economy, and the banking system in particular, prompted an increasing number of bank customers to attempt to withdraw their funds, an event known as a bank run. Because banks normally keep only a small proportion of deposits in cash, bank runs create a self-fulfilling prophecy such that initial concerns about banks’ possible insolvency ultimately cause insolvency. The bank run of 1930 resulted in the worst economic downturn in the modern history, the Great Depression.
Discipline
Economic Theory | Organizational Behavior and Theory
Research Areas
Organisational Behaviour and Human Resources
Publication
Harvard Business Review
First Page
1
Last Page
4
ISSN
0017-8012
Publisher
Harvard Business Review
Citation
SIROLA, Nina.
We’re less likely to collaborate in bad economic times. (2018). Harvard Business Review. 1-4.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/5875
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
External URL
https://hbr.org/2018/01/research-were-less-likely-to-collaborate-in-bad-economic-times