The Macroeconomics of the Great Depression Assignment (Essay Sample)

The Macroeconomics of the Great Depression
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The Journal on Credit and Banking structure was written by Ben S. Bernanke examining the great depression (Bernanke 2008). The author focuses on the macroeconomic impacts of the great depression by taking through a comparative approach of various countries. The article explains the money shocks of the great depression and its effects and the factors of deflation. The adjustment of the nominal wages seems to be a major significant in the article.
The author argues that the aggregate demand and the gold standard were among the major considerations of the macroeconomic impacts of the great depression. He noted that during the years of great depression, the changes in the output, as well as the levels of prices,showed very high correlation in almost all the countries which implies the critical significance of the aggregate demand shocks. He also noted that most of the countries in the 1930s were abandoning the gold standard for more philosophical and political reasons rather than economic(Bernanke 2008). Among the reasons that are argued in the article include the policies made for example the Federal Reserve Policy and its impacts on the decline of the gold money ratio.
The article could have been imperative in my depression from a macroeconomic point of view. Besides the historical perspective of the data recorded, the information provided in the article could have been crucial to understand the monetary issues such as liquidation and the reasons behind the choices made by the countries. The article could also have been...