Great Depression Dbq

. An expansionary monetary policy would have created a little strong inflation. Instead, the fed protected the dollar's value and created immense deflation which helped turning a recession into a decade-long depression. Many people were rubbed out, selling businesses and losing their life savings. That's because when the stock market started falling, brokers suddenly called in their loans. People had to struggle to find enough money to pay for their margins. The subsequent depression destroyed the us economy. The index for industrial production fell by 14.7% between august 1929 to october 1929. The index fell by another 21% by december 1930 in the u.s. industrial unemployment rate rose 3.3 times in u.s. from 7.9% in 1921-29 to 26.1% in 1930-38.

The great depression was particularly severe and stark in the united states and europe; it was slighter in japan and latin america. The poorest depression ever experienced by the world economy halted from a multitude of causes. There was financial panics, wrong government policies, decline in consumer demand which led to the fall in economic output in the us. While the gold standard, which linked nearly all the countries of the world in a network of fixed currency exchange rates, played a key role in communicating the american downturn to other countries. The economic impact of the great depression i.e extreme human sufferings and deep changes in the economic policy was huge.the great depression began in the united states as an usual recession in the summer of 1929. The situation worsen, however, in late 1929 and continued until early 1933. Real output and prices fell quickly. Between the peak and the channel of the downturn, industrial production in the united states and real gross domestic product (gdp) and wholesale price index saw vast decline. It is broadly agreed that the unemployment rate exceeded 20 percent at its highest point, although there is some debates revolving around the trustworthiness of the