scholarly journals The Influence of the Great Depression on Economic Theory

1972 ◽  
pp. 24-42
Author(s):  
Mark Eyskens
2010 ◽  
Vol 17 (2) ◽  
pp. 127-140 ◽  
Author(s):  
Michael Bordo ◽  
Harold James

In the discussion of our contemporary economic disease, the Great Depression analogy refuses to go away. Almost every policy-maker referred to conditions that had ‘not been seen since the Great Depression’, even before the failure of Lehman. Some even went further – the Deputy Governor of the Bank of England notably called the crisis the worst ‘financial crisis in human history’. In its April 2009 World Economic Outlook, the IMF looked explicitly at the analogy not only in the collapse of financial confidence, but also in the rapid decline of trade and industrial activity across the world. In general, history rather than economic theory seems to offer a guide in interpreting wildly surprising and inherently unpredictable events. Some observers, notably Paul Krugman, have concluded that a Dark Age of macroeconomics has set in.


2011 ◽  
Vol 2 ◽  
Author(s):  
Ivars Brīvers

The first decade of the XXI century clearly shows that the notion of the people concerning the values and goals in economy should be revised. As a result of global crisis economic theory may experience essential changes, as it was during the Great Depression in the XX century. The aim of the paper is to show the necessity of reconsidering the goals in economy. The hypothesis is that growth economy has become non-sustainable and it should be substituted by an economy of a different design – steady-state economy. The paper contains a review and analysis of various ideas about the problem, focusing mainly on the interpretation of the notion of sustainable development and the costs and benefits of economic growth; the way, how we measure things in economy and about the widespread illusions about the possibility of perpetual economic growth. The conclusion is that any growth, including economic growth is never sustainable.


Author(s):  
Mark Sniderman

Drawing from his long experience participating in the policymaking process at the Federal Reserve, chief policy officer Mark Sniderman shares his views on how the Federal Reserve's framework for conducting monetary policy has evolved over the past decade. He explains how changes in economic theory have helped shaped this new framework and how lessons learned from the Great Depression and Japan's recent struggle with deflation have contributed. This Commentary is based on a speech delivered at the Global Interdependence Conference, Tokyo, Japan, on December 4, 2012.


ICR Journal ◽  
2013 ◽  
Vol 4 (2) ◽  
pp. 304-307
Author(s):  
Abdul Karim Abdullah (Leslie Terebessy)

A number of nations are currently mired in an economic recession. Conventional economic theory seems unable to point to a way out. Many households, individuals, firms and even governments are trapped in sizable levels of debt. Keynes argued in favour of overcoming the Great Depression by raising government spending in order to stimulate economic growth. This was to be financed by borrowing. This solution worked then but is unlikely to work now, as many governments are already deeply in debt.  


2020 ◽  
Vol 9 (2) ◽  
Author(s):  
Zijian Liang ◽  
Michael Silber

This paper examines the evolution of macroeconomic theories from the 18th century to present. The manuscript starts off on giving a short analysis on the Great Depression and how it sparked numerous changes in macroeconomic policies. Then, the Classical Economic Theory is introduced and its shortcomings are examined through the Panic of 1873. Next, the paper's focus will shift to a deeper analysis on the causes, impacts, and the recovery of the Great Depression and the effects it had on the United States economy. Keynesianism and the benefits of fiscal policy are introduced and reasons for the rejection of the Classical Economic theory are explained. William Phillips' Phillips Curve is then introduced and connections between Phillips' theory and Keynes' theory are made. Lastly, the paper will examine the effects of monetary policy in the 1970s and the recent Great Recession of 2008. Most importantly, the reasons modern economists like Friedman oppose fiscal policy and Keynesianism are interpreted. From the works of these economists, the central argument of the paper advocates for the fact that we can no longer rely on the Classical Economic theory during times of economic crisis. The modern economy should be observing both Keynesianism and Monetarism; we should be pursuing expansionary fiscal policy during times of downturns and contractionary monetary policy during times of economic boom.


Author(s):  
Robert Wuthnow

For many Americans, the Middle West is a vast unknown. This book sets out to rectify this. It shows how the region has undergone extraordinary social transformations over the past half-century and proven itself surprisingly resilient in the face of such hardships as the Great Depression and the movement of residents to other parts of the country. It examines the heartland's reinvention throughout the decades and traces the social and economic factors that have helped it to survive and prosper. The book points to the critical strength of the region's social institutions established between 1870 and 1950—the market towns, farmsteads, one-room schoolhouses, townships, rural cooperatives, and manufacturing centers that have adapted with the changing times. It focuses on farmers' struggles to recover from the Great Depression well into the 1950s, the cultural redefinition and modernization of the region's image that occurred during the 1950s and 1960s, the growth of secondary and higher education, the decline of small towns, the redeployment of agribusiness, and the rapid expansion of edge cities. Drawing arguments from extensive interviews and evidence from the towns and counties of the Midwest, the book provides a unique perspective as both an objective observer and someone who grew up there. It offers an accessible look at the humble yet strong foundations that have allowed the region to endure undiminished.


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