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Can We Avoid Another Great Depression?

In: Economic Theory, Welfare and the State

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  • Clarence Lyle Barber

Abstract

As the Great depression has receded in time, fears of its recurrence, which were widespread in 1945, have gradually ebbed as memories have faded, a new generation has arrived upon the economic scene and the world has experienced an extended period of sustained growth. Still, as the stock market crash of October 1987 reminded us all, fears of another severe depression linger. This chapter examines the basis for these concerns. In particular, it outlines the changes in structure, in economic institutions and in attitudes to economic policy that might be expected to affect the world economy’s vulnerability to severe and protracted declines. In approaching the topic, this chapter first examines what we mean by the Great Depression and summarises briefly what economists believe to have been its origin.

Suggested Citation

  • Clarence Lyle Barber, 1990. "Can We Avoid Another Great Depression?," Palgrave Macmillan Books, in: Athanasios Asimakopulos & Robert D. Cairns & Christopher Green (ed.), Economic Theory, Welfare and the State, chapter 10, pages 156-175, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-10911-1_10
    DOI: 10.1007/978-1-349-10911-1_10
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