著者

望月 和彦

出版者

桃山学院大学

雑誌

桃山学院大学経済経営論集 (ISSN:02869721)

巻号頁・発行日

vol.54, no.1, pp.35-70, 2012-06-15

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On15th March 1920, the prices of stocks and commodities fell dramatically. That great fall was named "Daihando". As has been said in previous papers, a credit squeeze was brought by the domestic and external factors. The former is money fixation in the banking sector which deprived banks of capability to lend money. The latter is money shrink caused by the deficit of international trade. The credit squeeze caused Daihando in two ways, that is, (1) by the credit squeeze the interest rate was higher than a dividend yield of stocks so that it got irrational to invest in stocks, (2) many speculators bought stocks and commodities by borrowing money from banks, but by the credit squeeze the banks refused to lend money to the speculators, so that they had to sell their stocks and commodities if the market of stocks or any commodities had faced the turmoil. The market situation as a whole was so vulnerable to the external or internal shocks through this interlinkage between markets. The price fall began first in the future rice market on 10 th March. Then it spread to other market including stock market with panic sales. On15th March the great price fall came out in the stock market. The credit squeeze was a result of the lending restriction of the BOJ. The BOJ took the tight money policies since October1919, but they had no effect on the bubble ballooning. So instead of rising the discount rates which was politically difficult, the BOJ tried to restrict lending to the banks. This caused the credit squeeze which led the collapse of bubble.