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THE CRISIS OF 1929 AND THE GREAT DEPRESSION, image, image, image, image,…
THE CRISIS OF 1929 AND THE GREAT DEPRESSION
An abrupt end to prosperity
Economy was based on massive financial growth
New York Stock Exchange was overvalued
crash of the New York Stock Exchange
Companies lost their value and their capital
Many companies had to close down and fire their workers
Industrial production declined a great deal in short period of time
The end of the period of prosperity and of the short-lived Roaring Twenties
Many countries depended on US loans that were cancelled as a result of the crisis and its affects
Great Depression, the worstv crisis the capitalist had ever
Measures to overcome the great depression
Great Depression especially affected industrialised countries
Countries and colonies that exported raw materials also suffered the effects of the Great Depression
Some joint measures were attempted to overcome the crisis
They were based on economic nationalism and state intervention in the economy
In the United States, President Roosevelt proposed shock plan (New Deal) to revive the economy
In Great Britain restricted itself to devaluing the pound by 25%
the pound lost part of its value against other foreign currencies, this favoured exports and invigorated the domestic market
If free trade is committed to the free movement of good without the state intervening to regulate international trade
Protectionism, consists of establishing customs tariffs on imports to favour the country's own industry
JOHN MAYNARD KEYNES
he inspired the policies of New Deal
1883-1946
