What ended the Great Depression?

From the comments at Brad DeLong (way toward the bottom):

…fiscal policy had virtually nothing to do with the recovery. On this see

Brown, E. Cary. “Fiscal Policy in the Thirties: A Reappraisal.” American Economic Review 46, no. 5 (1956): 857-79.

Peppers, Larry. “Full Employment Surplus Analysis and Structural Change: The 1930s.” Explorations in Economic History 10 (1973): 197-210.

Raynold, Prosper, W. Douglas McMillin and Thomas R. Beard. “The Impact of Federal Government Expenditures in the 1930s.” Southern Economic Journal 58, no. 1 (1991): 15-28.

Christina Romer, “What Ended the Great Depression?”  Journal of Economic History (1992).

I went back and reread Romer and it is monetary policy, monetary policy, and monetary policy which ended the Great Depression.  It is a highly credible account.

By the way, here is Brad’s very interesting mini-essay on the New Deal, an extension of his Econoblog debate with Arnold Kling.


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