The crash was caused due to a wide range of factors, which became uncontrollable during the 1920s when America was experiencing a period of "boom" and many were benefiting from the flourishing prosperity.
The events of the Wall Street Crash signalled the start of the 12-year Great Depression, which had an affect not only upon the United States, but also the Western Industrialised countries, with having a rapid spread worldwide.
In addition whilst the high tariffs were placed on food imports, foreign countries retaliated by introducing similar tariffs on American food, therefore meaning that high tariffs made it difficult to allow farmers to export their surpluses.
The government policy of few regulations meant that a business would be able to continue to run as it saw was best to do so, so therefore laws such as fixed pricing was instead ignored, and if the government chose to get involved, they would be unable to do so effectively as the business would win in an appeal.
The governors disagreed on many issues, because at the time and for decades thereafter, experts disagreed about the best course of action and even about the correct conceptual framework for determining optimal policy.
Information about the economy became available with long and variable lags. The views in this essay reflect conclusions expressed in the writings of three recent chairmen, Paul Volcker, Alan Greenspan, and Ben Bernanke.
Other policies that would have helped were not adopted.
An example of the former is the Fed’s decision to raise interest rates in 19.
Return to full output and employment occurred during the Second World War.
To understand Bernanke’s statement, one needs to know what he meant by “we,” “did it,” and “won’t do it again.” By “we,” Bernanke meant the leaders of the Federal Reserve System.