Causes of Great Depression
What were the domestic and foreign causes of the Great Depression? How did President Hoover respond to the economic emergency?
The First World War was the initial cause of Great Depression. The war affected the international power balance and as a result, dramatically shocked the system of the global finances (Payne, 2017). For a long time, gold standard had served as the foundation for national currencies as well as the exchange rates. However, it had to be suspended for the countries to recover from the financial loss caused by the World War I. After a decade, countries such as European nations, Japan and United States tried to reestablish it resulting in an adverse impact on the international and domestic financial markets. In 1929, the U. S. stock market crashed causing an economic crisis in Germany as well as Financial problems in France and Great Britain (Payne, 2017). Financial issues in all these countries affected the global market, and as a result, there was a global financial crisis……..
APA 440 words