The 1931 banking crisis transformed Germany’s recession into the Great Depression.

Evidence

In the summer of 1931, Germany’s downturn was aggravated by a severe banking crisis. Output had contracted before, but the banking crisis helped turn a recession into the Great Depression: over 80% of the decline in output in durable production from peak to trough occurred after the start of the banking crisis. — Sebastian Doerr et al., Financial Crises and Political…, 51

Categorization

• SEED: The 80%-of-decline-after-crisis figure is a striking, citable stat for an economics-of-history piece.
• XREF: connects to: Fed rate hikes in 1928 reversed capital flows and triggered austerity in Germany. — Mark Blyth, Austerity: The History of a Dangerous…, 502; The Danatbank collapse introduced the banking crisis to the public. — Sebastian Doerr et al., Financial Crises and Political…, 51

Broader Connections

• The Danatbank collapse introduced the banking crisis to the public. #expands (0.78) — Sebastian Doerr et al., Financial Crises and Political…, 51
• Fed rate hikes in 1928 reversed capital flows and triggered austerity in Germany. #qualifies (0.72) — Mark Blyth, Austerity, 502