What caused the Great Depression?
The following excerpt is from a paper on macroeconomics by Emi Nakamura and Jon Steinsson, Columbia University October 25, 2017:
''throughout the period between early 1930 and March 1933, the Fed failed to act and instead allowed the money supply to fall by large amounts and allowed a substantial fraction of the banking system to fail. Eichengreen (1992) argues that an important reason why the Fed did not act was that it felt constrained by the gold standard. The idea is that effective action almost surely would have been inconsistent with remaining on the gold standard and those that favored remaining on the gold standard prevailed until Roosevelt took office. One of President Roosevelt’s first policy actions was to take the US off the gold standard in April 1933. Industrial production immediately sky-rocketed. The weakness of this observation is that the Roosevelt administration, of course, changed a number of polices.''