What Caused the Great Depression in the United States?

Abstract

Friedman and Schwartz have argued that the Great Depression was primarily caused by mistakes in monetary policy. This paper presents evidence supporting this view. Four percent money growth over the period 1929–1941 is found to prevent the Great Depression completely. Indeed, had such a policy been followed, real income would have grown nearly as rapidly in the 1930s as it grew in the 1920s.

Citation

Evans, P. (1997), "What Caused the Great Depression in the United States?", Managerial Finance, Vol. 23 No. 2, pp. 15-24. https://doi.org/10.1108/eb018606