The Great Depression would have been a lot less severe if monetary policy were better understood and managed at the time.

Question

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Many economists believe that the Great Depression could have been less severe if better monetary policy had been in place. The Federal Reserve's actions during the 1930s are often criticized for causing bank failures and a decrease in the money supply, worsening the economic downturn. Had the Fed better understood and managed monetary policy, they may have been able to prevent these negative effects and lessen the severity of the Great Depression.

The Great Depression Would Have Been a Lot Less Severe