The Forgotten Depression

Grant is well aware that Christina Romer (1994), as part of her over-all contention that pre-World War II business cycles were both shorter and less volatile than commonly thought, has put forward estimates indicating that the output loss during 1920-1921 was 6.6 percent, short of the 10 percent thr...

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Bibliographic Details
Published in:Quarterly journal of Austrian economics 2015-03, Vol.18 (1), p.82
Main Author: Bragues, George
Format: Article
Language:English
Subjects:
Business cycles
Central banks
Consumers
Cost reduction
Economic activity
Great Depression
Inflation
Interest rates
Monetary policy
Prices
Recessions
Unemployment
War
World War I
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Summary:Grant is well aware that Christina Romer (1994), as part of her over-all contention that pre-World War II business cycles were both shorter and less volatile than commonly thought, has put forward estimates indicating that the output loss during 1920-1921 was 6.6 percent, short of the 10 percent threshold informally used by economists to classify a given decline in production as a depression. [...]government officials, particularly at the Treasury Department, were in no mood to put the post-war expansion in jeopardy and the Fed, barely five years into its existence, lacked the institutional clout to resist the politicians. [...]it accommodated the swelling demand, leaving consumers flush with money to spend on goods, which led to a general rise in prices.
ISSN:1098-3708
1936-4806