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Great Depression, worldwide economic downturn that began in 1929 and lasted until about 1939.
It was the longest and most severe depression ever experienced by the industrialized Western world, sparking fundamental changes in economic institutions, macroeconomic policy, and economic theory.
(2) Banking panics in the early 1930s caused many banks to fail, decreasing the pool of money available for loans.
Cause And Effect Essay Great Depression Creative Writing Prompts For 3rd Grade
(3) The gold standard required foreign central banks to raise interest rates to counteract trade imbalances with the United States, depressing spending and investment in those countries.
The downturn became markedly worse, however, in late 1929 and continued until early 1933. Between the peak and the trough of the downturn, industrial production in the United States declined 47 percent and real gross domestic product (GDP) fell 30 percent.
The wholesale price index declined 33 percent (such declines in the price level are referred to as unemployment rate exceeded 20 percent at its highest point.
A number of countries in Latin America fell into depression in late 1928 and early 1929, slightly before the U. Japan also experienced a mild depression, which began relatively late and ended relatively early.
The general price deflation evident in the United States was also present in other countries.