WW2 and economics

The great depression started when the stock market crashed, it became great depression by 33,

4 Reasons : 1) money supply contracted interest rates were not falling, that made the credit crunch worst 2) no body believed in counter cyclical fiscal policy, raising taxes cutting spending maintain balance budget, that made the recession more severe 3) belief in greater destruction that banks collapsed, thousands collapsed, the credit crunch became even worse 4) 75% house mortgages defaulted

So stock market crashed, great depression, then currency worsen, then the trade worst, then you have protectionism then capital controls then default by countries that raised nasty regimes like Germany Italy and then we ended up in world war 2.

Nuriel Rubini