The Three Phases Of The Great Depression
The Great Depression is a long-continued economic crisis in the world economy, which began in the United States in 1929, and then in other industrialized countries of the world. People, who obsessed with the idea of rapid enrichment, invested all their savings in corporate stocks then to sell them foe high price. As you know, demand creates supply, and the value of securities grew with geometric progression. Inflated prices for shares did not stop Americans; they continued to buy shares in the hope of snatch a large sum in the future. Investors were actively borrowing to buy securities. The agiotage with shares made a bubble, which, according to the laws of the economy, would have to burst. Day October 24, 1929 entered the history of the United
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The first phase lasted from the end of the First World War until the mid-1920s, when countries tried to liberalize relations with each other. During this period, there was a period of high inflation in Germany. The second phase is marked by returns to the gold standard and a high unemployment rate. The third phase is characterized by a return to the regional economies of countries from international economy. Moreover, the mistake was that the some countries wanted to return to the gold standard. On the example of British currency that was overrated and as a result, exports were very expensive for other countries. In Germany, government could make some restriction the money supply. But the financial crisis in 1931spread to Germany too. The events in Germany affected other countries, such as Britain and the United States. They concentrated on its own domestic economies. In this time fascism came to power. Fascist current proposed to eliminate all democratic institutions while maintaining market economy. During 1930-1940 the Nazis established a strict currency control, signed trade agreements to create a trading zone. They introduced expenditures on public works and military rearmament. Fascists were much more successful in solving economic problems, and they did not have a specific model of economic management, they sought to establish control over the economy to advance their nationalistic and racist
The first phase lasted from the end of the First World War until the mid-1920s, when countries tried to liberalize relations with each other. During this period, there was a period of high inflation in Germany. The second phase is marked by returns to the gold standard and a high unemployment rate. The third phase is characterized by a return to the regional economies of countries from international economy. Moreover, the mistake was that the some countries wanted to return to the gold standard. On the example of British currency that was overrated and as a result, exports were very expensive for other countries. In Germany, government could make some restriction the money supply. But the financial crisis in 1931spread to Germany too. The events in Germany affected other countries, such as Britain and the United States. They concentrated on its own domestic economies. In this time fascism came to power. Fascist current proposed to eliminate all democratic institutions while maintaining market economy. During 1930-1940 the Nazis established a strict currency control, signed trade agreements to create a trading zone. They introduced expenditures on public works and military rearmament. Fascists were much more successful in solving economic problems, and they did not have a specific model of economic management, they sought to establish control over the economy to advance their nationalistic and racist