The Great Crash of 1929 : A Look Back After 90 Years

The Great Crash of 1929 ranks as one of the climactic economic events of the last 100 years. It raises important questions at the heart of understanding many financial crises. Why did the "Roaring 20s" roar? Was the boom in equities a "bubble"? What caused the sudden reversal in the fall of 1929? Did the Crash cause the Great Depression, as popular opinion has long maintained? Did public officials respond appropriately? This retrospective suggests that the complexity of this episode, the great influence of chance and contingency, and the gaps in information make the Great Crash a difficult standard by which to assess future events. The use of historical precedent warrants caution and great humility in the makers of public policy