The_Great_Depression

The Great Depression The Great Depression Starting in the summer of 1929 and continuing over the course of the next four years, financial markets, labor markets, and goods markets all virtually ceased to function. Throughout this difficult time period the government policymaking system seemed helpless. Since the end of the Great Depression, macroeconomists have discussed vigorously the circumstances that led to the overall collapse of the economy. John Maynard Keynes theory is central to understanding the Great Depression, and in my paper, I argue that the Federal Reserve played a key role in nearly every policy failure during this period. The crash of October 1929 played a large role in the Great Depression, but was only one of many drivers. The best evidence suggests that Federal Reserve behavior and the public statements of numerous government officials caused the crash. In the fall of 1928 immediately following the death of Benjamin Strong, the President of the Federal Reserve Bank of New York, the Federal Reserve policy became substantially tighter. Adolph Miller of the Federal Reserve Board was able to take control of policy. The problem began because Miller believed that speculation was causing share prices to be too keynes, federal, depression, reserve, money, government, great, bank, prices, policy, economy, economic, president, loans, crash, banks, 1929, years, unemployment, theory, system, supply, stock, role, production, period, maynard, market, large, john, financial, board, believed, after, world