The U.S. Economy Crises: 1929 Stock Market Crash and the Great Depression
RMIT International University Vietnam
COVER PAGE
Course Code:
ECON1193
Course Name:
Business statistic 1
Location where you study:
RMIT Hanoi
Title of Assignment:
Business Report
File(s) submitted
1
Student name:
Nguyen Ngoc Viet
Tran Quy Duong
Bui Bao Tram
Nguyen Ngoc Tram
Student e-mail address:
S3311960
S3393156
S3357527
S3393359
Learning Facilitator in charge:
Gopal
Assignment due date:
Date of submission:
Number of pages including this one:
31
Word Count:
Contents
Introduction
The US economy has suffered the two biggest crises which are the 1929 stock market crash and the following ‘great depression’. The length of the crisis causes many serious problems. Hence, many rushed to associate the global financial (GFC) crisis with the depression on a same scale, or so called as ‘the great recession’ when it struck in 2007. This researched essay studies these two events above with a closer look on its characteristics, scope, macroeconomic analysis as well as its application. This assignment contained of 3 sections which are the comparison of these two circumstances, discussion the types of policy tools, its effectiveness of each policy applied in both events and ultimately useful lessons for Vietnam.
Part A
1 Causes of Great Depression
The 1920s witnessed an economic boom in the US. Industrial output expanded very rapidly. Money supply is expanded as the result of economic growth, or the speculator policy of the bank. Additionally, the social attitude of American are over-confident, consuming more than saving, and borrowers are consistent with the belief that price would soar without falling down. Therefore, the stock market had boomed as price-earnings ratios were higher than the historical averages. That also leads to an asset price bubble in stock price, followed by the Great Depression in 1929
a. The stock market crash of October 1929
According to
COVER PAGE
Course Code:
ECON1193
Course Name:
Business statistic 1
Location where you study:
RMIT Hanoi
Title of Assignment:
Business Report
File(s) submitted
1
Student name:
Nguyen Ngoc Viet
Tran Quy Duong
Bui Bao Tram
Nguyen Ngoc Tram
Student e-mail address:
S3311960
S3393156
S3357527
S3393359
Learning Facilitator in charge:
Gopal
Assignment due date:
Date of submission:
Number of pages including this one:
31
Word Count:
Contents
Introduction
The US economy has suffered the two biggest crises which are the 1929 stock market crash and the following ‘great depression’. The length of the crisis causes many serious problems. Hence, many rushed to associate the global financial (GFC) crisis with the depression on a same scale, or so called as ‘the great recession’ when it struck in 2007. This researched essay studies these two events above with a closer look on its characteristics, scope, macroeconomic analysis as well as its application. This assignment contained of 3 sections which are the comparison of these two circumstances, discussion the types of policy tools, its effectiveness of each policy applied in both events and ultimately useful lessons for Vietnam.
Part A
1 Causes of Great Depression
The 1920s witnessed an economic boom in the US. Industrial output expanded very rapidly. Money supply is expanded as the result of economic growth, or the speculator policy of the bank. Additionally, the social attitude of American are over-confident, consuming more than saving, and borrowers are consistent with the belief that price would soar without falling down. Therefore, the stock market had boomed as price-earnings ratios were higher than the historical averages. That also leads to an asset price bubble in stock price, followed by the Great Depression in 1929
a. The stock market crash of October 1929
According to