Customer Quote by Charles River Editors
““an absurdly parsimonious monetary policy helped bring about the Great Depression.””
About This Quote
Source Article: Economic History Review, 2020
Excessive frugality in monetary policy contributed to the Great Depression.
In simple terms: Over‑tight money policy hurt the economy.
Balance monetary policy for stability.
Themes
Mood
Type
When to use this quote
- central banking
- financial regulation
- investment strategy
Key Concepts
Questions to Reflect On
- What is the optimal policy balance?
- How can policymakers avoid extremes?
Tight policy can also prevent inflation.