Great Depression =

Question 1

Fiscal policy

Answer 1

Roosevelts new deal = huge fiscal stimulus package, us government increased spending massively. Spent on public infrastructure and employing people.

Question 2

Monetary policy

Answer 2

Interest rates cut from 6% to 4 and 2% in us and uk, adding to economic recovery, and UK abandoned the gold standard.

Question 3

Policy for financial crisis

Answer 3

Initially cut interest rates down to 0.5% - a record low, but due to low consumer and business confidence, this didn’t work, so ended up with a 375bn£ QE package to stimulate the economy.

Question 4

Bank of England responsibility

Answer 4

Responsible for deciding monetary policy to control inflation/ economic growth, controlled my the monetary policy committee. Can also change the supply of money