Saturday, November 5, 2011

Overview of Great Depression

The crisis 1929 or the Great Depression is the period of history U.S. that followed the Black Thursday October 24 1929, the day the stock market New York is collapsed. The events of that day started an economic crisis that led to the World deflation and a significant increase in the unemployment.

Many Economists believe that the Great Depression was both caused and prolonged by the attitude of the U.S. government. Although the release mechanism of the crisis is perhaps not due to government action, many believe that economic policy incorrectly turned what should have been a stock market crash passenger in an economic crisis that lasted a decade. Two policies were particularly stigmatized by economists:

The first is the tight monetary policy of the U.S. Federal Reserve, which limits the quantity of money in the market. The second is the use of measures protectionist such as Hawley-Smoot Tariff Act, Which increased tariffs on imports in order to protect local producers endangered by international competition. In response to this policy, other countries increased their prices in turn; putting in very bad shape U.S. companies that export lived. This led to a series of rate increases that fragments the global economy. Read more.....

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