Anybody have any critiques on these two well known essays? Or have looked at them? -
Ben Bernanke, "The Macroeconomics of the Great Depression: A Comparative
Approach," Journal of Money, Credit, and Banking (1995): 1‐28.
Barry Eichengreen and Jeffrey Sachs, “xchange Rates and Economic
Recovery in the 1930s,”Journal of Economic History (1985):925‐946.
My assignement is to answer these 2 questions.
1. What causes do Bernanke and Eichengreen and Sachs believe caused the severity
of the Great Depression?
2. What are their views on the Federal Reserve? Do you believe the Federal Reserve
could have prevented the increased downturn from 1930 to 1932?
Thanks guys. Got an A on my last paper with help from you guys
1. High deflation due to bank closure.
2. (a) They think it has a history of not being aggressive enough in steering the economy with monetary policy. (b) Absolutely. They could prevented it by resigning. Of course, you won't get an A for this.