
Contents
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I. The Symptoms and their Origin I. The Symptoms and their Origin
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Origin of the Crisis Origin of the Crisis
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Monetary Policy During the 1920s Monetary Policy During the 1920s
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Two Exceptions to the Roaring Twenties in 1921 and 1930 Two Exceptions to the Roaring Twenties in 1921 and 1930
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Why did the Stock Market Crash in October 1929? Why did the Stock Market Crash in October 1929?
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Was the Stock Market Crash of October 29, 1929, Predicted? Was the Stock Market Crash of October 29, 1929, Predicted?
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Why did the Stock Market Crash on October 29, 1929? Why did the Stock Market Crash on October 29, 1929?
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II. The Great Depression: Symptoms, Policies, and Institutional Buildup II. The Great Depression: Symptoms, Policies, and Institutional Buildup
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Institutional Buildup Under the New Deal Institutional Buildup Under the New Deal
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A Counterproductive Policy Switch in 1937 with Negative Impact in 1938 and 1939 A Counterproductive Policy Switch in 1937 with Negative Impact in 1938 and 1939
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III. The Great Depression and the Current Financial Crisis: Contrasts III. The Great Depression and the Current Financial Crisis: Contrasts
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Differences in Crises Origins Differences in Crises Origins
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Crises Impacts on the Real Economy Crises Impacts on the Real Economy
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Policy Responses: Similarities and Contrasts Policy Responses: Similarities and Contrasts
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Monetary and Fiscal Policies: Contrasts and Lessons Monetary and Fiscal Policies: Contrasts and Lessons
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The New Institutions: Then and Now The New Institutions: Then and Now
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American Crises Turning Global American Crises Turning Global
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The Political Environment: Then and Now The Political Environment: Then and Now
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8 The Great Depression and the Current Financial Crisis
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Published:June 2011
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Abstract
This chapter analyzes the Great Depression in an attempt to understand the current financial crisis. The Great Depression of the 1930s is known for the combination of financial collapse, economic downturn, increased unemployment, and failed regulatory efforts. Historians and economists sought to identify conditions in the 1920s that contributed to the Great Depression of the 1930s, and the institutional and policy measures adopted during the administration of former President Roosevelt. The chapter compares these measures with how the Obama administration dealt with the current financial crisis and eventually proposed regulatory overhaul that aimed at preempting similar turmoil in the future.
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