Lessons from the 1930s' Great Depression

60 Pages Posted: 22 Nov 2010

See all articles by Nicholas Crafts

Nicholas Crafts

University of Warwick; Centre for Economic Policy Research (CEPR)

Peter Fearon

University of Leicester

Date Written: October 2010

Abstract

This paper provides a survey of the Great Depression comprising both a narrative account and adetailed review of the empirical evidence focusing especially on the experience of the United States. We examine the reasons for and the flawed resolution of the American banking crisis as well as the conduct of fiscal and monetary policy. we also consider the pivotal role of the gold standard in the international transmission of the slump and leaving gold as a route to recovery. Policy lessons from the Great Depression for today are discussed as are some implications for macroeconomics

Keywords: banking crisis, fiscal multiplier, gold standard, Great Depression

JEL Classification: E65, N12, N14

Suggested Citation

Crafts, Nicholas and fearon, peter, Lessons from the 1930s' Great Depression (October 2010). CEPR Discussion Paper No. DP8057, Available at SSRN: https://ssrn.com/abstract=1711070

Nicholas Crafts (Contact Author)

University of Warwick ( email )

Gibbet Hill Rd.
Coventry, West Midlands CV4 8UW
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Peter Fearon

University of Leicester

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