SOME INTERNATIONAL ASPECTS OF BUSINESS CYCLES: NEISSER, HABERLER, AND MODERN OPEN ECONOMY MACROECONOMICS

Despite the transnational character of the Great Depression, there are few works in the interwar literature that deal with the propagation of business cycles across national borders and systemic risks of depression in the world economy. Two notable exceptions are Hans Neisser’s Some International Aspects of the Business Cycle (1936) and chapter 12 in Gottfried Haberler’s Prosperity and Depression ([1937] 1964), which carries the heading “International Aspects of Business Cycles.” Both works differ substantially from each other and from the modern way of thinking about international business cycles in open economy macroeconomics. Haberler’s and Neisser’s approaches help to identify relevant issues that have been lost from sight in modern open economy macroeconomics.