Causes of the Great Depression

The causes of the Great Depression in the early 20th Century are a matter of active debate among economists, and are part of the larger debate about economic crisis, although the common belief is that the Great Depression was triggered by the 1929 crash of the stock market. The specific economic events that took place during the Great Depression have been studied thoroughly: a deflation in asset and commodity prices, dramatic drops in demand and credit, and disruption of trade, ultimately resulting in widespread unemployment (over 13 million people were unemployed by 1932) and hence poverty. However, historians lack consensus in determining the causal relationship between various events and the government economic policy in causing or ameliorating the Depression. The initial stock market crash triggered a "panic sell-off" that made the stock market go even lower.