Essays on the Great Depression Ben S. Bernanke Princeton, N.J.: Princeton University Press, 2000, 310 pp. Economists’ fascination with the description and interpretation of the
1. How similar is the current global economic recession to the Great Depression?
2. Who coined the term the Great Depression?
3. Write about the effects of Great Depression on our current economic status.
4. What countries experienced the Great Depression?
5. How can we prevent global recession from happening again?
Essays on the Great Depression - Princeton University Press
Few periods in history compare to the Great Depression. Stock market crashes, bread lines, bank runs, and wild currency speculation were worldwide phenomena--all occurring with war looming in the background. This period has provided economists with a marvelous laboratory for studying the links between economic policies and institutions and economic performance. Here, Ben Bernanke has gathered together his essays on why the Great Depression was so devastating.
The Cause of the Great DepressionThe great depression is almost mythical to many younger people growing up in America today. ... However, not many people known the true cause of the depression and how the depression was not limited to the United States. The great depression of occurred because of three main reasons and left the country trying to recover for the next decade. ... Because Americans didn"t save their money they ran into the second cause for the great depression: debt. ... The third reason for the great depression is the most widely known. ...The Federal Reserve was created to regulate the money supply. The Fed in response to the Stock Market Crash and economic decline severly cut the money supply by more than 25 pecent. Monetary policy was not a major issue at the time. Political discourse was more focused on fiscal policy (taxes and spending). It now appears that monetary policy was the key factor. One noted economnist believes that this turned what might have been a severe recession into the Great Depression. [Freeman] Another important economist aggrees and believes that inappropriate tight modernetary policy/increased in value of debt which help intensify a deflationary spiral. This was a factor that was not widely recognized at the time and for quite some time after the Depression.