Great Depression Of 1929 Vs Global Financial Crisis Of 2008-2009

(Bernanke , 2007b White , 1984 . They asserted that failure by the cater to overthrow the decline in money stock with open grocery place ope dimensionns and loans to banks through discount windows added further pressure to the economy (Friedman , 1963 According to them , the 1937 -1938 recession was triggered by the cater s attempt to roleplay lending by doubling of the required reserve - balance , this had the opposite effectMishkin (2007 ) writes that the importance of this theory to most economists is that it opened a whole new connection between the financial heavens and the macroeconomy .

Another important contribution was that it suggested new re front docket Calomiris (1993 ) summarized them thusCan the reduction in money stocks from 1930 to 1933 explain the bank failures or did they have a separate originWas the demand for money motionless given the low nominal short term interests seethe in the 1930s or was there a fluidness trapCould nominal price and wage rigidity offer an passable to(predicate) explanation for the persistent stagnation during the 1930sWere policy failures by the Fed actions acts of omission or commission or did they represent the handicraft of the old classical theories to new circumstancesWere open market traffic operations by the Fed , unaccompanied by reforms in the financial and bank regulations , sufficient in reversing the 1930-1933 stagnationFollowing the publication of the financial annals , economist f ocused either on validating Friedman and Sw! artz assertions or in researching the implications of their findings . For two decades , the focus was mainly on the setoff three questions . Unfortunately , economists restricted there inquiries indoors the mannequin of the sticky-price IS-LM paradigm . This approach severely limited the search for alternating(a) transmission mechanisms between financial markets and the macroeconomy (Bernanke , 1983 . Support for the Monetarist theory has seduce out from formal statistical tests which examined the correlations between...If you want to get a wide of the mark essay, order it on our website: BestEssayCheap.com

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