During this period, the United States and France have accumulated more than half the world's gold supply. While continuing to hold high interest rates, they were trying to get more gold to maintain the domestic price level. Such deliberate policy led to deflationary pressure on the world economy and especially the countries with weak currencies, which built a pyramid of foreign borrowing to "narrow base of gold reserves. The countries of Central and Eastern Europe could then maintain a fixed exchange rate to gold only through access to credit, coming from the U.S. and UK. This allowed them to have a current account deficit without increasing the interest rates (Galbraith, 2009, pp.186-210).
The nice clinical depression was among the many global financial reduced tumbles experienced in the 20th Century. The financial bad times was proficient in most developed countries on the earth. America was among the many areas which was most come to with this recession. That it was principally competent from 1929 all-around middle of the August. North America used up approximately two week which includes a secure drop of GDP. There initially were a lot of points that generated the secure reduction inside GDP of the us.