Correct, the government contracted the money supply by 1/3 after the 29 crash. Milton Friedman has proved that the government was the cause of the Depression. It is government interference in economic matters that always makes ALL problems worse. I can't remember the book, but he definitely laid out a brilliant expose of government arrogance. I think he said the Depression would have lasted under three years if the government did nothing. Instead we suffered under FDR and the resulting Socialism of Social Security and the Withholding tax.
that is true, it was the contraction in the money supply after the stock market crash that actually caused the depression. I will give greenspan credit for that - he did not allow that to happen this time after the stock market bubble collapse.
alot of theories flying here - I am only sure of one thing - if china floats the yuan, that will ease alot of problems for the US. we must break the chinese currency peg.
An outmoded thesis...even Milton..its originator.. has intimated. It was foreign governments, not the Smoot-Hawley tariff that trashed the trade.