ECON 319 Lecture Notes - Lecture 9: Austrasia, Aggregate Demand, Pound Sterling
9 Feb 2017
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Lectures notes : the great depression (1927-1940), george grantham. Great depression: greatest economic trauma of the 20th century. Began in europe in the late 20s and lasted in the us until 1942. Consequences: shut-down of the world trade and collapse of the gold standard mechanism. Contributed to the expansion/creation of the welfare state (old pensions, unemployment insurance, poverty assistance) Led to the keynesian revolution (= modern economies do not have a natural tendency toward full employment and the determinant of the level of output and employment in the. Significant expansion in the economic role of the national state (before the great. Depression primarily to supply public goods of defense, justice and transport facilities). Very brief but sharp depression of 1921-1922 (provoked by a monetary contraction to control inflation). Real output fall at annual rates of 8 to 13%. Per-capital output fell by 1/3 = people worse-off.
