great depression

Sofía Olalde Montoya

greatdepression

Was a worldwide economic depression that lasted 10 yearsIt began in the United States on October 24, 1929, otherwise known as “Black Thursday," when panicked investors sold a record 13 million shares

According to Ben Bernanke, a former chairman of the Federal Reserve, the central bank helped create the Depression. It used tight monetary policies when it should have done the opposite. According to him in 2004, these were the Fed's five critical mistakes

What Caused It

Investors withdrew all their deposits from banks. The failure of the banks created more panic

The Fed did not increase the supply of money to combat deflation.

The Fed raised interest rates again to preserve the dollar's value

When the stock market crashed, investors turned to the currency markets

The Fed began raising the fed funds rate in the spring of 1928. It kept increasing it through a recession that started in August 1929.

In 1932, the country elected Franklin D. Roosevelt as president. He promised to create federal government programs to end the Great DepressionWithin 100 days, he signed the New Deal into law, creating 42 new agencies throughout its lifetime

What Ended it