Causes and Policy Responses of the Great Depression and the Financial Crisis of 2008: A Comparison
Abstract: This paper does a comparative analysis of the causes and policy responses between the Great Depression of 1929 and the Financial Crisis of 2008. The Great Depression in 1929 originated from a stock market bubble burst and a subsequent rise in interest rates due to the Federal Reserve’s contractionary monetary policy. The Financial Crisis of 2008 was on the other hand, caused through a real estate bubble burst that escalated with the creation of subprime mortgage backed securities. The Great Depression spread throughout the countries that had been maintaining a strict adherence to gold standard. The Financial Crisis transmitted outside the United States through the process of securitization. A series of monetary and fiscal policies and banking reforms eventually helped overcome the slowdown in economic growth caused by these two financial crises.
Keywords: Financial crisis 2008, Great Depression
How to Cite?: Musharrat Azam, "Causes and Policy Responses of the Great Depression and the Financial Crisis of 2008: A Comparison", Volume 8 Issue 7, July 2019, International Journal of Science and Research (IJSR), Pages: 1728-1730, https://www.ijsr.net/getabstract.php?paperid=ART201910009, DOI: https://dx.doi.org/10.21275/ART201910009