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EH.Net Encyclopedia: An Overview of the Great Depression |
 | | The Great Depression, and the economic catastrophe that it was, is perhaps properly scaled in reference to the decade that preceded it, the 1920s. |
 | | The empirical support for the validity of the nonmonetary/financial hypothesis during the Depression is substantial (Bernanke, 1983; Fackler and Parker, 1994, 2001; Hamilton, 1987, 1992), although support for the “credit view” for the transmission mechanism of monetary policy in post-World War II economic activity is substantially weaker. |
 | | For the literature on the Great Depression, the empirical research conducted on the expectations hypothesis focuses almost exclusively on uncertainty (which is not the same thing as pessimistic/optimistic expectations) and its contribution to the onset of the Depression (Romer, 1990; Flacco and Parker, 1992). |
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