How Important was the Stock Market Crash to the Great Depression?

 


One way to evaluate the Stock Market Crash of 1929 in the US is to conduct a Free Simulation (the dashed read line in the graphic above). When compared to the actual data (solid black line), the simulation shows a much sharper collapse of growth (US1) in the USGD model after the 1929 Crash. This post  explains how to interpret the result.


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