Many factors contributed to the Great Depression. In America, the roaring twenties produced a false sense of prosperity, America had become the world’s bank that faced the crisis of defaulting loans, and, the failure of banks following the stock market crash each contributed to the great depression. The most damaging of these, in my opinion, was the American attitude that created a false sense of prosperity and caused behavior in individuals that had a significant impact on the economy. During the 1920’s, the economy was reaching new heights and Americans were spending at excessive amounts. However, the ...
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Abstract
The Great Depression during the 1930s was referred to as the most severe economic downturn that affected the United States and the global economy. The depression lasted for almost a decade, and some economists and monetary scholars blamed the failure of the banking institutions to come up with effective policies to maintain a sound standing. The banks were not sufficiently prepared to deal with erratic economic movements. Consequently, there were also those who argued that the Fed should be blamed for the economic recession because of their failure to adapt sound monetary policies. It was pointed out that the ...
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