The Great Depression was an economic meltdown that began in 1929 and lasted 10 years. It was the longest depression ever experienced in the United States. It also caused drastic declines in output, high unemployment, and caused economic problems in the United States. It originally started in 1927, but by 1929 the whole stock market failed. In this essay I would like to talk about the reason it happened. (Bernanke, Ben S. “Nonmonetary Effects of the Financial Crisis in the Propagation of the Great Depression.” American Economic Review) The timing of the Great Depression varied substantially across the countries. It was severe in the United States and Europe, but it was milder in Japan and most of South America. Surprisingly, the worst the
