Pack 4 - financial crisis and great depression stats

Question 1

What policies were used in the US in the Great Depression?

Answer 1

• contractionary monetary policy used in first few years
• expansionary fiscal policy (due to WWII) - e,g Roosevelt’s New Deal

Question 2

What policies were used in the UK in the Great Depression?

Answer 2

• contractionary fiscal policy (made situation worse)
• expansionary monetary policy (leaving gold standard)
• protectionist measures

Question 3

US responses to financial crisis

Answer 3

• expansionary fiscal policy - Economic stimulus Act
• expansionary monetary policy interest rates cut to 0-0.25% in 2008

Question 4

UK responses to financial crisis

Answer 4

• expansionary fiscal policy but shifted to reducing budget deficit in 2010
• expansionary monetary policy