The Great Depression Was The Single Most Devastating Economic Catastrophe Essay

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The Great Depression was the single most devastating economic catastrophe that had resounding effects and consequences on people all over the world. Did the various expansionary monetary policies employed by the Fed help the US pull out of the Great Depression during the Hoover administration? What was done differently after Roosevelt became president? Many economists and historians have argued that the misguided monetary policies during the Hoover administration including the mistiming of interest hike, allowance of the decrease in national money supply and reluctance in expansionary monetary policies due to the maintenance of the gold standard were contributive to the length and severity of the Great Depression. Several estimates from various models have suggested that the mistakes made in the monetary policies during the same period contributed to around 20 to 70% of the decline in real output during the Hoover administration (Fishback, 2010, pg 386). After the Roosevelt administration took control in 1933, recovery began primarily due to the abandonment of the gold standard and the appointment of Eugene Black as the Chair of the Federal Reserve. This argument is backed by numerous case studies, economic models, and research papers. Researching these two questions would provide a deeper insight into some of the monetary policies implemented today and also make sure that history doesn’t repeat itself. Facts presented below supports the argument on how the Fed’s monetary
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