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Historical analogy - Essay Example

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One of the most discussed events in the 20th century is the Great Depression. The period of Great Depression can be considered as one of the most economically devastating event in history. It had…
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Historical analogy
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Historical analogy

Download file to see previous pages... an economic event that began in 1928 in Germany and in 1929 in the United States that resulted in economic hardship, degrading changes in political systems and even sparked the World War II according to certain groups. The said event can be related to the policies implemented by the governments of Germany and United States (Temin, 1991, p.42).
One point presented is the access to credit. This resulted to tightness of credit from 1920-1930 in Europe which can be related to the collapse of production and the prices during the early period of Depression (Temin, 1991, p.42). The financial meltdown due to global current account imbalances based on due to trade balances intensified by other factors can be considered as the main reasons for the Great Depression (Lehmann and Lehmann, 2010, p.101).
Aside from the factors related to credit, production and prices of products, there are key events related to the Depression. The first event was the stock-market crash in New York. Other three other events were the Smoot-Hawley tariff in 1930, the first baking crisis of Friedman and Schwartz and the collapse of the commodity prices. Based on these events, the Great Depression can be significantly related to the dynamics in the economy of the United States (Temin, 1991, p.43).
By analyzing the different events on the basis of the dynamics of the stock-market, there are numerous events that can be compared to the Great Depression but none of them resulted to the said economic catastrophe. The stock market changed but the income generation had not been achieved. The global economic meltdown can be considered very similar to the Great Depressions in numerous aspects.
The global economic meltdown can be compared to the Great Depression in certain points. The said event that occurred between 2008 and 2009 was based on defective monetary policy. The economic meltdown can be considered as the problem faced by the modern world which originated in the economic system of the ...Download file to see next pagesRead More
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