The French paradox: A financial crisis during the golden age of the 1960s

Abstract

The French stock market crisis of 1961–67 was the biggest of the twentieth century after that of the 1930s. Using the new stock index (historical CAC 40), it is possible to get a fair idea of its amplitude and detail its chronology. The possibility is considered that the crisis of the 1960s was more of a market correction after the bull run of the 1950s. The fall of the stock prices is an adjustment to the abrupt halt of the growth of dividends, the potential impacts of internal political choices and of the structural characteristics of the French stock market during this period are also investigated.