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Causes of the Great Depression
The causes of the Great Depression are still a matter of active debate among economists, and is part of the larger debate about economic crises, although the popular belief is that the Great Depression was caused by the crash of the stock market. The specific economic events that took place during the Great Depression have been studied thoroughly: a deflation in asset and commodity prices, dramatic drops in demand and credit, and disruption of trade, ultimately resulting in widespread poverty and unemployment. However, historians lack consensus in describing the causal relationship between various events and the role of government economic policy in causing or ameliorating the Depression.
USA GDP annual pattern and long-term trend, 1920-40, in billions  of dollars at constant prices.
Current theories may be broadly classified into three main points of view. First, there is orthodox classical economics: monetarist, Austrian Economics and neoclassical economic theory, which focus on the macroeconomic effects of money supply, how central banking decisions lead to overinvestment (economic bubble), or the supply of gold, which backed many currencies before the Great Depression, including production and consumption. Second, there are structural theories, most importantly Keynesian, but also including those of institutional economics, that point to underconsumption and overinvestment (economic bubble), malfeasance by bankers and industrialists, or incompetence by government officials. The only consensus viewpoint is that there was a large-scale lack of confidence. Unfortunately, once panic and deflation set in, many people believed they could make more money by keeping clear of the markets as prices got lower and lower and a given amount of money bought ever more goods.
British economist John Maynard Keynes in 1936 argued that there are many reasons why the self-correcting mechanisms that some economists claimed should work during a downturn may not work in practice. In his The General Theory of Employment, Interest and Money, Keynes introduced concepts that were intended to help explain the Great Depression. One argument for a noninterventionist policy during a recession was that if consumption fell due to savings, the savings would cause the rate of interest to fall. According to the classical economists, lower interest rates would lead to increased investment spending and demand would remain constant. However, Keynes states that there are good reasons why investment does not necessarily increase in response to a fall in the interest rate. Businesses make investments based on expectations of profit. Therefore, if a fall in consumption appears to be long-term, businesses analyzing trends will lower expectations of future sales. Therefore, the last thing they are interested in doing is investing in increasing future production, even if lower interest rates make capital inexpensive. In that case, according to Keynesians and contrary to Say's law, the economy can be thrown into a general slump. This self-reinforcing dynamic is what happened to an extreme degree during the Depression, where bankruptcies were common and investment, which requires a degree of optimism, was very unlikely to occur.
Because of the huge reparations that Germany had to pay France. (such as in the Panic of 1907) by suspending the convertibility of deposits into currency. the current Chairman of the Federal Reserve. The system nearly collapsed in 1907 and there was an extraordinary intervention by an ad-hoc coalition assembled by J. The mechanism suggested by Friedman and Schwartz was that people wanted to hold more money than the Federal Reserve was supplying. The Fed's failure was in not realizing what was happening and not taking corrective action. Consequently. thought Friedman was right to blame the Federal Reserve for its role in the Great Depression. in the monetarist view. and in part because the prevailing opinion at the time was that deflation was not a danger. The bankers demanded in 1910-1913 a Federal Reserve to reduce this structural weakness. and France paying back loans to the United Kingdom and United States. stating on Nov.Causes of the Great Depression 2 Monetarist explanations In their 1963 book "A Monetary History of the United States. particularly the inflation in the Weimar Republic. most nations returned to the gold standard at the pre-war gold price. At the time. As a result people hoarded money by consuming less. the Great Depression. 2002: "Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. the stock of money fell by over a third. Milton Friedman and Anna Schwartz laid out their case for a different explanation of the Great Depression. forced by the enormous costs of the war. P. the primary explanations of it tended to ignore the importance of money. and 1933 might not have happened. However. 8. was caused by the fall of the money supply. the banking system had dealt with periodic crises in the U. Ben Bernanke. while inflation. who argued that in so doing. Monetary policy was in effect put into a deflationary setting that would over the next decade slowly grind away at the health of many European economies. but that the Federal Reserve exercised the wrong policies. perhaps this would have stopped the vicious circle of the forced liquidation of assets at depressed prices. We're very sorry. just as suspension of convertibility in 1893 and 1907 had quickly ended the liquidity crises at the time. because those who had loaned in nominal amounts hoped to recover the same value in gold that they had lent. the cure to inflation was to reduce the amount of circulating medium. But thanks to you. in the monetarist view. in part. we did it. Morgan. Gold Standard The Gold Standard theory of the Depression attributes it to postwar deflationary policies. Germany began a credit-fueled period of growth in order to export and sell enough abroad to gain gold to pay back reparations. the banking panic of 1931.” Essentially." The result was what Friedman calls the "Great Contraction"— a period of falling income. because it was not matched with rationing and other forms of forced savings. as the world's gold sink. loaned money to Germany to industrialize. This resulted in inflation. This caused a contraction in employment and production since prices were not flexible enough to immediately fall. However. they were . the failure of the Federal Reserve to deal with the Depression was not a sign that monetary policy was impotent.” In their view. You're right. I would like to say to Milton and Anna: Regarding the Great Depression. the Depression was “in fact a tragic testimonial to the importance of monetary forces. They did not claim the Fed caused the depression. The view is that the quantity of money determined inflation. was an unbearable danger. Friedman suggests the untested hypothesis that if a policy similar to 1907 had been followed during the banking panic at the end of 1930.S. The United States. This had numerous economic consequences. 1867-1960". only that it failed to use policies that might have stopped a recession from turning into a depression. This arrangement was codified in the Dawes Plan."  Before the 1913 establishment of the Federal Reserve. prices. Friedman and Schwartz write: "From the cyclical peak in August 1929 to a cyclical trough in March 1933. While the British Banking Act of 1925 created currency controls and exchange restrictions. what is of particular relevance is that following the war. and employment caused by the choking effects of a restricted money supply. 1932. and therefore. it set the new price of the Pound Sterling at parity with the pre-war price. which was then the basis for Germany paying back France. After the Depression. During World War I many European nations abandoned the gold standard. in his view. this was criticized by John Maynard Keynes and others. we won't do it again.
unless they abandoned their currency’s link to gold. According to their conclusions. This central mechanism of interest rate and fractional reserve rate determination stands in stark contrast to market mechanisms distributed and specific to each bank. Deflation erodes the price of commodities while increasing the real value of debt. Studies of France. Germany. Keynes' criticism of Winston Churchill's form of the return to the gold standard implicitly compared it to the consequences of the Versailles Treaty. by economists such as Peter Temin. shoulders much of the blame.Causes of the Great Depression forcing a revaluation of wages without any tendency to equilibrium. and those that abandoned it earlier suffered less from deflation and tended to recover more quickly. many of which are collected in Kehoe and Prescott 2007 . the Great Depression was the inevitable outcome of the easy credit policies of the Federal Reserve during the 1920s. capital stock. By the time the Fed belatedly tightened in 1928. policy makers may have wanted to loosen monetary and fiscal policy. this line of research rejects simple explanations that imply a decline in the capital stock or that imply no decline in hours worked.S. According to them. The problem with this policy is that the reserve rate and interest rates were centrally decided then uniformly applied to all banks. the initial destabilizing shock may have originated with the Wall Street Crash of 1929 in the U. the Federal Reserve. Since its enactment in 1913. Italy. and government efforts to prop up the economy after the crash of 1929 only made things worse. dampening the recovery and prolonging the depression.. . Austrian School explanations Austrian theorists who wrote about the Depression include Hayek and Murray Rothbard. Harold Cole and Lee Ohanian argue that in America the cartelization of industry suppressed the labor supply. which caused the initial decline in output and a prolonged recovery due to government policies. In their view. Austrian theorists hold that the key cause of the Depression was the expansion of the money supply in the 1920s that led to an unsustainable credit-driven boom. which was created in 1913. but such action would threaten the countries’ ability to maintain its obligation to exchange gold at its contractual rate. In this view. Ben Bernanke and Barry Eichengreen. In their view. governments had their hands tied as the economies collapsed. decompose the economic decline into a decline in the labor supply. the Federal Reserve had served as the central bank of the United States. government intervention delayed the market’s adjustment and made the road to complete recovery more difficult. but the recovery in output was much slower than the recovery in productivity. Together. and the UK show similar patterns. in the Austrian view. and the productivity with which these inputs are used. The Federal reserve effectively regulated the amount of credit private banks could issue by providing overnight loans and strict reserve requirements. The artificial interference in the economy was a disaster prior to the Depression. it was far too late and. As the Depression worsened. many countries started to abandon the gold standard. These studies. which all came to the wall street stock market crash in 1929. Deflation's impact is particularly hard on sectors of the economy that are in debt or that regularly use loans to finance activity. The countries studied all suffered initially from dramatic drops in productivity. Therefore. but it was the gold standard system that transmitted the problem to the rest of the world. has focused on the constraints policy makers were under at the time of the Depression. More recent research. the constraints of the inter-war gold standard magnified the initial economic shock and was a significant obstacle to any actions that would ameliorate the growing Depression. Rothbard wrote "America's Great Depression" in 1963. Uniform central bank policies allowed banks with poor lending policies to have easy access to credit—as easy as conservative banks. 3 Neoclassical approach Recent work from a neoclassical perspective focuses on the decline in productivity. such as agriculture. modified by country-specific policies. According to Rothbard. during a time of crisis. a depression was inevitable.
but Rothbard argues that this was because the American populace lost faith in the banking system and began hoarding more cash. maintain the industrial base. Under pressure from the Coolidge administration and from business. 3. 7. As long as corporations had continued to expand their capital facilities (their factories. which went into the stock market bubble rather than into consumer purchases. the Federal Reserve Board kept the discount rate low. and Marriner Eccles. 2. and new factories were not needed. but reinflate prices and wages to force as much of the inflationary increase in purchasing power into consumer spending. including Herbert Hoover. Say's law no longer operated in this model (an idea picked up by Keynes). encouraging high (and excessive) investment. capital investments had created more plant space than could be profitably used. which raised its total holding to $1. in trade and in employment.8 billion.  According to this view. Rothbard asserts that the Federal Reserve purchased $1. 4. which fueled speculation and asset bubbles. Paul Douglas. The economy was overbuilt. Thus the unequal distribution of wealth throughout the 1920s caused the Great Depression. Rothbard argues. According to this view. Fisher tied loose credit to over-indebtedness. That is. and other investments). The solution was the government must pump money into consumers' pockets. it must redistribute purchasing power. 5. The potential for a run on the banks caused local bankers to be more conservative in lending out their reserves. popularized a theory that influenced many policy makers. a program followed by Hoover and Roosevelt. wages increased at a rate lower than productivity increases. Waddill Catchings and William Trufant Foster. warehouses. By the end of the 1920s. and.Causes of the Great Depression Rothbard criticizes Milton Friedman's assertion that the central bank failed to inflate the supply of money. such as farms. It held that the economy produced more than it consumed. 6. the economy had flourished. heavy equipment. Wallace. Foster and Catchings recommended federal and state governments start large construction projects. Debt liquidation and distress selling Contraction of the money supply as bank loans are paid off A fall in the level of asset prices A still greater fall in the net worths of business. and factories were producing more than consumers could purchase. however. a factor very much beyond the control of the Central Bank. He then outlined 9 factors interacting with one another under conditions of debt and deflation to create the mechanics of boom to bust. the root cause of the Great Depression was a global overinvestment in heavy industry capacity compared to wages and earnings from independent businesses. was the cause of the Federal Reserve's inability to inflate. Henry A. Most of the benefit of the increased productivity went into profits. because the consumers did not have enough income. Debt deflation Irving Fisher argued that the predominant factor leading to the Great Depression was overindebtedness and deflation. . 4 Inequality of wealth and income Two economists of the 1920s. 8. precipitating bankruptcies A fall in profits A reduction in output. Pessimism and loss of confidence Hoarding of money Crowd at New York's American Union Bank during a bank run early in the Great Depression. Total bank reserves only rose by $212 million. The chain of events proceeded as follows: 1.1 billion of government securities from February to July 1932.
Causes of the Great Depression 9. In the face of bad loans and worsening future prospects. Banks built up their capital reserves and made fewer loans. which the borrowers did not have time or money to repay. which intensified deflationary pressures. the banking system was not well prepared to absorb the shock of a major recession. The very effort of individuals to lessen their burden of debt effectively increased it. Small banks. A vicious cycle developed and the downward spiral accelerated. After the panic of 1929. Some of the nation's largest banks were failing to maintain adequate reserves and were investing heavily in the stock market or making risky loans. During the Crash of 1929 preceding the Great Depression. 5 Crowd gathering on Wall Street after the 1929 crash. Bank failures led to the loss of billions of dollars in assets. Outstanding debts became heavier. Economists have argued that a liquidity trap might have contributed to bank failures. 744 US banks failed. around $7 billion in deposits had been frozen in failed banks or those left unlicensed after the March Bank Holiday. would lend $9 for every $1 an investor had deposited. already deeply in debt. brokers called in these loans. have revived the debt-deflation view of the Great Depression originated by Fisher. Farmers. Loans to Germany and Latin America by New York City banks were especially risky. This self-aggravating process turned a 1930 recession into a 1933 great depression.000 banks failed during the 1930s). margin requirements were only 10%. the surviving banks became even more conservative in their lending.  Structural weaknesses in banking Economic historians (especially Friedman and Schwartz) emphasize the importance of numerous bank failures. there was a steady stream of failures among these smaller banks throughout the decade. capital investment and construction slowed or completely ceased. which could not be paid back. the more the debtors paid. because prices and incomes fell by 20–50% but the debts remained at the same dollar amount. the more they owed. (In all. 9. The mass effect of the stampede to liquidate increased the value of each dollar owed. Federal Reserve Bank. were in constant crisis in the 1920s with their customers defaulting on loans because of the sudden rise in real interest rates. in other words. and crop prices were too low to allow them to pay off what they owed. Macroeconomists including Ben Bernanke. Paradoxically. In other words. their land was already over-mortgaged (as a result of the 1919 bubble in land prices). By April 1933. relative to the value of declining asset holdings. Government guarantees and Federal Reserve banking regulations to prevent such panics were ineffective or not used. The city banks also suffered from structural weaknesses that made them vulnerable to a shock. and during the first 10 months of 1930. The failures were mostly in rural America. saw farm prices plummet in the late 1920s and their implicit real interest rates on loans skyrocket. When the market fell. A fall in nominal interest rates and a rise in deflation adjusted interest rates. Structural weaknesses in the rural economy made local banks highly vulnerable. . The liquidation of debt could not keep up with the fall of prices it caused. Bank failures snowballed as desperate bankers called in loans. Brokerage firms. With future profits looking poor. especially those tied to the agricultural economy. Banks began to fail as debtors defaulted on debt and depositors attempted to withdraw their deposits en masse. the current chairman of the U.S. triggering multiple bank runs.
S. That was partly because European industry and agriculture were becoming more productive. Economists agree that somehow it shared some blame.S. but how much no one has estimated.S. and particularly after the American economy began to weaken after 1929. sums much too large to be repaid out of their shattered treasuries. There was a brief recovery in the market into April 1930. Instead. "I don't doubt for a moment that the collapse of New York stock market index the stock market in 1929 played a role in the initial recession". . Reparations. they were no more able to pay the reparations than the Allies were able to pay their debts. they believed.Causes of the Great Depression 6 Economists and historians debate how much responsibility to assign the Wall Street Crash of 1929. goods began to decline. At the same time. the third group says that in either scenario the crash could not have caused more than a recession. Milton Friedman concluded. banks began making large loans to the nations of Europe. market decline by any measure. but prices then started falling steadily again from there. high U. or at least reduce them. U. markets. Beginning late in the 1920s. the magnitude of the shock to expectations of future prosperity was high. debts (and reparations) were being paid only by augmenting old debts and piling up new ones. Most analysts believe the market in 1928-29 was a "bubble" with prices far higher than justified by fundamentals. European demand for U. entirely different factors had to be in play.S. The debate has three sides: one group says the crash caused the depression by drastically lowering expectations about the future and by removing large sums of investment capital. tariffs were making it much more difficult for them to sell their goods in U. and partly because some European nations (most notably Weimar Germany) were suffering serious financial crises and could not afford to buy goods overseas. would provide them with a way to pay off their own debts. Without any source of revenue from foreign exchange to repay their loans. The debtor nations put strong pressure on the United States in the 1920s to forgive the debts. a second group says the economy was slipping since summer 1929 and the crash ratified it. the central issue causing the destabilization of the European economy in the late 1920s was the international debt structure that had emerged in the aftermath of World War I. In the late 1920s. The American government refused. To move from a recession in 1930 to a deep depression in 1931-32. This is one reason why the Allies had insisted (to the consternation of Woodrow Wilson) on demanding reparation payments from Germany and Austria–Hungary. they began to default. all European nations that had been allied with the United States owed large sums of money to American banks. the European nations found it much more difficult to borrow money from the United States. Thus. not reaching a final bottom until July 1932. This event may have worsened or even caused the ensuing bank runs in the Midwest and West that caused the collapse of the banking system. This was the largest long-term U. The timing was right. However. The Smoot–Hawley Tariff Act was especially harmful to agriculture because it caused farmers to default on their loans. Germany and Austria-Hungary were themselves in deep economic trouble after the war. However.S. Breakdown of international trade When the war came to an end in 1918.
however.S. Van Nostrand Company. funds flowed back from Europe to America. is often indicted as a cause of the Great Depression. 1963 America's Great Depression D. which alone made it possible for foreign nations to buy U. Milton and Anna Jacobson Schwartz. and Germany was able to make those payments only because of large private loans from the United States and Britain. IL • Rothbard. "The Stock Market Boom and Crash of 1929 Revisited" Journal of Economic Perspectives. and the entire structure of reparations and war debts collapsed.  Others argue that protectionism was not a cause but a reaction to the depression. 67–83. protectionism served to change the terms of trade for countries whose monetary policy was constrained by the gold standard. the world was reeling from the worst depression of recent memory. exports. and Europe's fragile economies crumbled. Australia • Meltzer. No. examines different theories . such as the Smoot–Hawley Tariff Act. tariffs. 1867-1960 (1963) • Keen. Eugene N. • Friedman. During the 1920s. investments abroad provided the dollars. Murray N. a petition signed by over 1. Vol. In this interpretation. Debunking Economics Pluto Press Australia Limited Sydney. Chicago. 2003 A History of the Federal Reserve Volume I: 1913-1951 Chicago University Press.  • Dorfman. 4. Similarly. U. Joseph. Murray N. A History of Money and Banking in the United States: The Colonial Era to World War II (2002) • White. this did not stop the act from being signed into law. with countries enacting protectionist policies yielding a beggar-thy-neighbor result. Allan H. The high tariff walls critically impeded the payment of war debts. Economic Mind in American Civilization (1959) vol 4 and 5 cover the ideas of all American economists of 1918-1933. As a result of high U.S. Steve 2001. Princeton.S. By 1931. only a sort of cycle kept the reparations and war-debt payments going. A Monetary History of the United States. Norman.S. In the scramble for liquidity that followed the 1929 stock market crash. while countries off the gold standard could cut interest rates and print fiat money. 1990).000 economists was presented to the U. See also • Political philosophy References • Secular Stagnation and Great Depression. the former allies paid the war-debt installments to the United States chiefly with funds obtained from German reparations payments. L. 7 Protectionism Protectionism. government warning that the Smoot-Hawley Tariff Act would bring disastrous economic repercussions. with protectionism policies being adopted by countries holding to the gold standard rather than having floating exchange rates: countries on the gold standard could not cut interest rates or act as lender of last resort because they would run out of gold. NJ • Rothbard. R. pp. Jr. 2 (Spring.Causes of the Great Depression Prior to the Great Depression.
and J. Michael A. and Eugene N. Capitalism in Crisis: International Responses to the Great Depression (1993) • Haberler. and Marc Flandreau. 1929-1939 (1983). . Bradford. Hibbard. • De Long. The World Between the Wars. Golden Fetters: The Gold Standard and the Great Depression. The Gold Standard and Related Regimes: Collected Essays (1999) • Brown. The European Economy Between the Wars (1997) • Garraty." Journal of Interdisciplinary History 19 (1989) 553-83. Broadus. 2004. Randall E. 1996. and R. Schwartz. F. Barry. Charles H. ISBN 0-19-510113-8 • Eichengreen. Robert S. • Tipton. June. Advanced economic history. “The Cause and Consequences of the Great Depression” in The Intellectual Activist. • Part 1: “What Made the Roaring ’20s Roar”. Course. David Ferguson. 1929-1941 (1964). Richard J. 16–24. Bernanke. • Part 4: “Freedom and Prosperity”. 2004. Aldrich. and the Great Depression 1919-1939 (1976) • Hall. • Chandler. January. Richard M. The Gold Standard in Theory and History (1997) • Feinstein. Joseph S. eds. pp. August. America's Greatest Depression (1970). Britain. "The Causes and Cures of Unemployment in the Great Depression. The Defining Moment: The Great Depression and the American Economy in the Twentieth Century (1998). and ended only when government policy became less statist and more laissez-faire. Thomas E. White. Barry. standard economic history overview. Michael et al. David E. 1929-1939 (1989) focus on low-growth and high-growth industries • Bordo. John A. The World Economy. Depression Decade: From New Era through New Deal. G. • Part 3: “Roosevelt’s Raw Deal”. Reflections on the Great Depression (2002) interviews with 11 leading economists • Salsman. eds. The Great Depression: An International Disaster of Perverse Economic Policies (1998) • Kaiser. 14–23.Causes of the Great Depression 8 Further reading World • Ambrosius. pp. 1930-1939 (1980) • Kindleberger. 1821–1931 (1984) (National Bureau of Economic Research Conference Report) • Bordo. eds. 10–20. John A. and W. economic history overview. • Part 2: “Hoover’s Progressive Assault on Business”. eds. July. Salsman argues that the Great Depression was fundamentally caused by statist government policy. pp. 2005. Liquidation Cycles and the Great Depression (1991) • Jensen. Unemployment in History (1978) • Garside. and Anna J. Mr. The Great Depression: An Inquiry into the Causes. as Seen by Contemporaries and in Light of History (1986) • Garraty. Gottfried. 9–20. • Parker. A Retrospective on the Classical Gold Standard. The Economies of Africa and Asia in the Inter-War Depression (1989) • Davis. 1919-39: An Economist's View (1974) • Eichengreen. A Social and Economic History of Twentieth-Century Europe (1989) • Bordo. 1919–1939 (NBER Series on Long-Term Factors in Economic Development). The Great Depression (2nd ed 1993) social history • Mitchell. and Consequences of the Worldwide Depression of the Nineteen-Thirties. The Great Depression: Delayed Recovery and Economic Change in America. ISSN 0730-2355. An Economic and Social History of Europe. The World in Depression. Michael D. William R. 2004. Lester.. Ian. Charles P. Michael. Essays on the Great Depression (2000) • Bernstein. pp. France and Eastern Europe. Claudia Goldin. 1890–1939 (1987) United States • Ben S. Economic Diplomacy and the Origins of the Second World War: Germany. online at JSTOR in most academic libraries • McElvaine. Money.
• Wells. Susan (2006). 0. Frank G. Donald R. . doi: 10. • Mayhew.xi  Bernanke 2002. Peter. Charting Twentieth-Century Monetary Policy: Herbert Hoover and Benjamin Strong. "The Debt-Deflation Theory of Great Depressions". "A Reconsideration of Federal Reserve Policy during the 1920-1921 Depression. • Wicker. The Federal Reserve System: A History (2004) • Wueschner. Prescott. nybooks.  Rothbard." Journal of Economic History 44 (December 1984): 957-84. p. Jeff. Silvano A. • Temin. " Non-Monetary Effects of the Financial Crisis in the Propagation of the Great Depression (http:/ / links. • Epstein. Peter (Sept-Oct. Margin Loans. Gerald and Thomas Ferguson. 1917-33.2307/1907327 (http:/ / dx. com/ p/ articles/ mi_m3937/ is_2000_Sept-Oct/ ai_80855422/ pg_5)"." Journal of Economic Issues 17 (June 1983): 353-60. The American Dole: Unemployment Relief and the Welfare State in the Great Depression (2000)  9 • Warren. Publication Year: 1996. Timothy J. Allan H. American Monetary Policy. livinghistoryfarm. p. " Margin Requirements.4.Causes of the Great Depression • Singleton.  Paul Krugman. com/ articles/ 19857)  Eichengreen 1992. Harris Gaylord. Issue: 3. Historical Statistics of the US: Millennial Edition. org/ 10. com) Federal Reserve Bank of Minneapolis. Vo: 30. Discussion paper no. Federal Reserve Monetary Policy. (1999) References     Carter. 8 2002  Friedman 2007. Elisabeth (May 2002).  Dorfman 1959  Allgoewer. in JSTOR • Wicker. greatdepressionsbook. html)".293-294. . (1995). htm). Interpretations of the Great Depression (http:/ / www. A History of Money and Banking in the United States. vwa. 1928-41. Retrieved 2008-05-22. gov/ BOARDDOCS/ SPEECHES/ 2002/ 20021108/ default. and Margin Rates: Practice and Principles .15.analysis of history of margin credit regulations .  " Bank Failures (http:/ / www. Volume 1: 1913-1951 (2004) the standard scholarly history • Steindl. New England Economic Review. 352  Bernanke. "Ideology and the Great Depression: Monetary History Rewritten. Lester V.80  Kehoe. federalreserve. 2007 online community (http:/ / www. Role of the United States Federal Reserve • Chandler. retrieved January 1. .198. and Edward C. Did Monetary Forces Cause the Great Depression? (1976). Speech by Ben Bernanke. The American Economic Review (The American Economic Association) 73 (3): 257–276. jstor. Living History Farm. Friedman 1965. Herbert Hoover and the Great Depression (1959). in JSTOR • Kubik. ch/ RePEc/ usg/ dp2002/ dp0214allgoewer_ganz. . Monetary History of the United States". Number 32 · February 3. Loan Liquidation and Industrial Conflict: Federal Reserve System Open Market Operations in 1932.Statistical Data Included (http:/ / findarticles. Anne. The Federal Reserve Board. org/ sici?sici=0002-8282(198306)73:3<257:NEOTFC>2.  The Road to Plenty (1928)  Fisher. 1917-1927 Greenwood Press.. Elmus R. "Monetary Policy. 2002 (http:/ / www. Keen 2000. 2002-14. pp 829+. 2007. Elmus. pp.2-0& origin=repec)". Monetary Interpretations of the Great Depression." Journal of Economic Issues . " Underconsumption theories and Keynesian economics. November 8. Paul J. pdf)". Econometrica 1: 337–357. org/ farminginthe30s/ money_08. "Federal Reserve Policy during the Great Depression: The Impact of Interwar Attitudes regarding Consumption and Consumer Credit. 2007 saying on Nov.  Fortune. (1971). CO. Ben S (June 1983). p. . • Meltzer. A History of the Federal Reserve. p.  "Friedman and Schwartz. doi. Great Depressions of the Twentieth Century (http:/ / www. 2000). Irving (October 1933). unisg. (1966). 2307/ 1907327)." Journal of Economic History (1966) 26: 223-238. "Who Was Milton Friedman?" New York Review of Books Volume 32. p.
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