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Title: The Transmission of The Great Depression Through Globalized Economies
Authors: Nicolette Liu
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Nicolette Liu Riverdale Country School, New York
MLA 8 Liu, Nicolette. "The Transmission of The Great Depression Through Globalized Economies." Int. j. of Social Science and Economic Research, vol. 9, no. 12, Dec. 2024, pp. 6302-6309, doi.org/10.46609/IJSSER.2024.v09i12.043. Accessed Dec. 2024. APA 6 Liu, N. (2024, December). The Transmission of The Great Depression Through Globalized Economies. Int. j. of Social Science and Economic Research, 9(12), 6302-6309. Retrieved from https://doi.org/10.46609/IJSSER.2024.v09i12.043 Chicago Liu, Nicolette. "The Transmission of The Great Depression Through Globalized Economies." Int. j. of Social Science and Economic Research 9, no. 12 (December 2024), 6302-6309. Accessed December, 2024. https://doi.org/10.46609/IJSSER.2024.v09i12.043.
References [1] . Diaz-Alejandro, Carlos F. “Latin America in Depression, 1929-1939”. Center Discussion Paper, No. 344, Yale University, Economic Growth Center, CT, March, 1980. https://www.econstor.eu/bitstream/10419/160270/1/cdp344.pdf. [2] . Frieden, Jeffry A. Global Capitalism: Its Fall and Rise in the Twentieth Century. W. W. Norton & Company, 2007. [3] . Garraty, John A. The Great Depression: An Inquiry into the Cause, Course and Consequences of the Worldwide Depression of the Nineteen-Thirties. New York: Harcourt Brace Jovanovich, 1986. [4] . Kindleberger, Charles P. The World in Depression 1929-1939. Berkeley : University of California Press, 1987. [5] . Pells, Richard H., and Christina D. Romer. "Great Depression: Economy." Encyclopedia Britannica. https://www.britannica.com/event/Great-Depression.
ABSTRACT: Before World War I, British banks and financial institutions played a significant role in the global economy, spreading British capital across the world through extensive international lending and investment. The price of gold was fixed in Britain, and the “gold standard was accepted as an objective fact, hardly subject to alteration.”1 However, with World War I, most countries abandoned the Gold standard, and America soon assumed the leadership position as most European countries were incapacitated due to their participation in the war. The World War significantly altered America’s position in the world as, according to economist Jeffry A. Frieden, “America changed from being the world’s biggest debtor to its biggest lender.”2 After World War I, America replaced Britain as the leading power in the world, creating ties with all of the countries that previously relied on British loans through the gold standard, lending, and trade, making all countries dependent on the American economy susceptible to the economic downturn that started well before the 1929 Wall Street Market Crash. Along with economic policy missteps in countries that failed to adjust their currencies after the revival of the gold standard, the American Stock Market Crash served as a catalyst, triggering a domino effect that drastically reduced trade and capital flows worldwide.

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