BEGINNER

Depression

FEBRUARY 24, 2013

Broadly, a downturn in the economy where real (inflation adjusted) income shrinks. Depressions are commonly observed at the national level. Some major causes of depressions include misallocation of capital, increased uncertainty, and supply shocks.

Ben Powell - The Great Boom and Bust

 

Paul Cwik - Austrian Theory of the Business Cycle

Related Freeman Articles

OUR ECONOMIC PAST

Are We Looking at the Wrong Depression?

FEBRUARY 22, 2012 by STEPHEN DAVIES

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Cause, Effect, and the Current Depression

Sorting it out.

AUGUST 11, 2010 by WILLIAM L. ANDERSON

All too often people confuse cause and effect.

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The Great Depression According to Milton Friedman

The Great Depression Could Have Been Avoided if the Fed Had Not So Badly Botched Its Monetary Policy

SEPTEMBER 01, 2007 by IVAN PONGRACIC JR.

OUR ECONOMIC PAST

The Great Contraction, 1929–33

New Ideas about Government Intervention in Recessions Worsened the Great Depression

APRIL 01, 2007 by ROBERT HIGGS

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December 2014

Unfortunately, educating people about phenomena that are counterintuitive, not-so-easy to remember, and suggest our individual lack of human control (for starters) can seem like an uphill battle in the war of ideas. So we sally forth into a kind of wilderness, an economic fairyland. We are myth busters in a world where people crave myths more than reality. Why do they so readily embrace untruth? Primarily because the immediate costs of doing so are so low and the psychic benefits are so high.
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