The in the summer of 1929, but the

The in the summer of 1929, but the

The great depression is and was the most severe event ever experienced by the industrialized Western world, this brought fundamental changes in economic institutions, macroeconomic policy, and economic theory. Although it had originated in the United States, the Great Depression later caused drastic declines in output, severe unemployment, and acute deflation in almost every country worldwide. The Great Depression had begun in the United States as an ordinary recession in the summer of 1929, but the downturn became markedly worse, however, in late 1929 and continued until early 1933, Real output and prices fell drastically. The recovery from the Great Depression was started largely by ditching the gold standard and any ensuing monetary expansion, causing the economic impact of the Great Depression to be absolutely enormous, including both extreme human suffering and profound changes in economic policy.

The Depression affected virtually every country of the world. However, the dates and magnitude of the downturn varied substantially across countries, Great Britain struggled with low growth and recession during most of the second half of the 1920s. Britain for instance did not slip into as severe of a depression as other countries, however, until early the 1930’s, and its peak-to-trough decline in industrial production was roughly one-third that of the United States. The U.S. on the other hand had their recovery period began in the spring of 1933, where general output grew rapidly in the mid-1930s: real GDP rose at an average rate of 9 percent per year between 1933 and 1937.

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