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The false balance sheets of the Bank of France and the origins of the Franc crisis, 1924--26

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  • Bertrand Blancheton

Abstract

This study explores the role of accounting manipulation in a period of economic and political crisis. Recently discovered archival material at the French Ministry of Finance casts new light on the false balance sheets issued by the Bank of France during the 1920s and permits a comprehensive review of the nature and extent of falsification. This episode of accounting manipulation marked a turning point in French monetary policy. It destroyed the credibility of governmental monetary intentions and was the beginning of the second franc crisis. A new interpretation of this episode of national currency depreciation is suggested. In line with Aftalion's (1926) findings, the study identifies the centrality of the psychological influence of note circulation disclosures as a motivation for falsification.

Suggested Citation

  • Bertrand Blancheton, 2012. "The false balance sheets of the Bank of France and the origins of the Franc crisis, 1924--26," Accounting History Review, Taylor & Francis Journals, vol. 22(1), pages 1-22, March.
    • Handle: RePEc:taf:acbsfi:v:22:y:2012:i:1:p:1-22
    DOI: 10.1080/21552851.2012.653134
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    References listed on IDEAS

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    1. Hubert Bonin & Gérard Béaur & Claire Lemercier, 2007. "Contrebande, fraude et contrefaçon, de l'Antiquité à nos jours," Post-Print hal-00255984, HAL.
    2. Eichengreen, Barry, 1996. "Golden Fetters: The Gold Standard and the Great Depression, 1919-1939," OUP Catalogue, Oxford University Press, number 9780195101133.
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    1. BLANCHETON Bertrand, 2015. "The Act of 1973 on Banque de France’s independence: the myth of the end of advances," Cahiers du GREThA (2007-2019) 2015-03, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    2. Aurélien Espic, 2024. "Public debt as private liquidity: the Poincaré experience (1926–1929)," Post-Print hal-04590073, HAL.
    3. BLANCHETON Bertrand, 2015. "Towards a tacit low-degree independence central banking model ?," Cahiers du GREThA (2007-2019) 2015-17, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    4. Blancheton, Bertrand, 2016. "Central bank independence in a historical perspective. Myth, lessons and a new model," Economic Modelling, Elsevier, vol. 52(PA), pages 101-107.
    5. Bertrand BLANCHETON, 2013. "L’autonomie de la Banque de France au XXe siècle," Cahiers du GREThA (2007-2019) 2013-21, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).

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