The Great Depression was a long severe recession in the economy/market, it started in 1929 and lasted until the late 1930s the cause of the Great Depression started because of the crash in the stock market leaving the country in panic and wiping out all the investors. By 1933 when the Great Depression reached nadir some 13 to 15 million people were unemployed and half of the countries banks had failed The Great Depression is used to show how far the economy can decline, the Federal Reserve didn’t act upon the decline if the economy because of the money supply was the golden standard the amount of credit the federal reserve could issue was limited by the federal reserve act which required a 40% gold backing of federal reserve notes issued.
