It did so because the authorities applied the wrong medicine to what was a very sick economy. Over the next 18 months between January 1930 and July 1932 the bottom fell out of the world economy. The stock market is down 50 to 60 percent, profits are down 50 percent, unemployment is up from 4.5% to over 8%. If you take our present situation, 16 months into the current recession, we're about at the same place.
The stock market was down about 60%, profits had fallen in half and unemployed had climbed from 4% to about 10%. In December 1930, the great economist Maynard Keynes published an article in which he described the world as living in “the shadows of one of the greatest economic catastrophes in modern history.” The world was then 18 months into what would become the Great Depression. Is a potent reminder of the enormous impact that the decisions of central bankers can have, their fallibility, and the terrible human consequences that can result when they are wrong.Īmazon Exclusive: Liaquat Ahamed on the Economic Climate As yet another period of economic turmoil makes headlines today, In fact, as Liaquat Ahamed reveals, it was the decisions made by a small number of central bankers that were the primary cause of that economic meltdown, the effects of which set the stage for World War II and reverberated for decades. It is commonly believed that the Great Depression that began in 1929 resulted from a confluence of events beyond any one person's or government's control.
"A magisterial work.You can't help thinking about the economic crisis we're living through now.".
0 kommentar(er)
