Macroeconomics and Its Impact
MACRO ASSIGNMENT – 24/6/13
Section 3 – Group No. 5
The relation between Macroeconomics and the Great Depression
The Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in 1930 and lasted until the late 1930s or middle 1940s.It was the longest, most widespread, and deepest depression of the 20th century. The popular belief is that the Great Depression was caused by the 1929 crash of the stock market. The specific economic events that took place during the Great Depression are a deflation in asset and commodity prices, dramatic drops in demand and credit, and disruption of trade, ultimately resulting in widespread unemployment and hence poverty. Now we will see the macroeconomics involved in this event.
Macroeconomics and the Great Depression
The causes which led to great depression can be related to macroeconomics
Stock market crash and financial panic
The Wall Street Crash of 1929, also known as Black Tuesday and the Stock Market Crash of 1929, began in late October 1929 and was the most devastating stock market crash in the history of the United States, when taking into consideration the full extent and duration of its fallout. The crash signalled the beginning of the 10-year Great Depression that affected all Western industrialized countries and did not end in the United States until the onset of American mobilization for World War II at the end of 1941.
The market had been on a nine-year run that saw the Dow Jones Industrial Average increase in value tenfold, peaking at 381.17 on September 3, 1929.Shortly before the crash, economist Irving Fisher famously proclaimed, "Stock prices have reached what looks like a permanently high plateau." The optimism and financial gains of the great bull market were shaken on September 18, 1929, when share prices on the New York Stock Exchange (NYSE) abruptly
Section 3 – Group No. 5
The relation between Macroeconomics and the Great Depression
The Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in 1930 and lasted until the late 1930s or middle 1940s.It was the longest, most widespread, and deepest depression of the 20th century. The popular belief is that the Great Depression was caused by the 1929 crash of the stock market. The specific economic events that took place during the Great Depression are a deflation in asset and commodity prices, dramatic drops in demand and credit, and disruption of trade, ultimately resulting in widespread unemployment and hence poverty. Now we will see the macroeconomics involved in this event.
Macroeconomics and the Great Depression
The causes which led to great depression can be related to macroeconomics
Stock market crash and financial panic
The Wall Street Crash of 1929, also known as Black Tuesday and the Stock Market Crash of 1929, began in late October 1929 and was the most devastating stock market crash in the history of the United States, when taking into consideration the full extent and duration of its fallout. The crash signalled the beginning of the 10-year Great Depression that affected all Western industrialized countries and did not end in the United States until the onset of American mobilization for World War II at the end of 1941.
The market had been on a nine-year run that saw the Dow Jones Industrial Average increase in value tenfold, peaking at 381.17 on September 3, 1929.Shortly before the crash, economist Irving Fisher famously proclaimed, "Stock prices have reached what looks like a permanently high plateau." The optimism and financial gains of the great bull market were shaken on September 18, 1929, when share prices on the New York Stock Exchange (NYSE) abruptly