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10 de out. de 2022

Austrian economists argue that the Great Depression was the inevitable outcome of the monetary policies of the Federal Reserve during the 1920s. The central bank's policy was an "easy credit policy" which led to an unsustainable credit-driven boom. The inflation of the money supply during this period led to an unsustainable boom in both asset prices (stocks and bonds) and capital goods. By the time the Federal Reserve belatedly tightened monetary policy in 1928, it was too late to avoid a significant economic contraction.[39] Austrians argue that government intervention after the crash of 1929 delayed the market's adjustment and made the road to complete recovery more difficult.[40][41]