When I was in secondary school, the Great Depression (GD) use to be a major topic together with World War 1 and 2 in our history lessons. Many years ago, I also watched several documentaries on GD and Great Financial Crisis which kickstart my interest in financial blogging and research.
For those who are unaware, the GD was the worst economic downturn in the history of the industrialized world, lasting from 1929 to 1939. It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors.
If you “wiki or google” Great Depression” and try to find the cause of it, you will find two main causes take precedence. Monetary and Keynesian reasonings. In this article, I will focus on what is the Monetary and Keynesian theories, and why did the US government back then push policies that contracted the money