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Did the New Deal Prolong or Worsen the Great Depression?

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  • Greg Hannsgen
  • Dimitri Papadimitriou

Abstract

A revisionist view of economic history now holds that New Deal legislation that, in particular, enabled unionization in the early 1930s seriously prolonged the Great Depression. The freshwater economists who hold this view have had a wide hearing. These two economists consider their arguments and present a persuasive rebuttal.

Suggested Citation

  • Greg Hannsgen & Dimitri Papadimitriou, 2010. "Did the New Deal Prolong or Worsen the Great Depression?," Challenge, Taylor & Francis Journals, vol. 53(1), pages 63-86.
    • Handle: RePEc:mes:challe:v:53:y:2010:i:1:p:63-86
    DOI: 10.2753/0577-5132530103
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    References listed on IDEAS

    as
    1. Dimitri Papadimitriou, 1999. "No Cheers for Full Employment," Challenge, Taylor & Francis Journals, vol. 42(6), pages 80-102, November.
    2. Dimitri B. Papadimitriou & L. Randall Wray, "undated". "Are We All Keynesians (Again)?," Economics Policy Note Archive 01-10, Levy Economics Institute.
    3. Christopher J. Erceg & Michael D. Bordo & Charles L. Evans, 2000. "Money, Sticky Wages, and the Great Depression," American Economic Review, American Economic Association, vol. 90(5), pages 1447-1463, December.
    4. Harold L. Cole & Lee E. Ohanian, 1999. "The Great Depression in the United States from a neoclassical perspective," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 23(Win), pages 2-24.
    5. Romer, Christina D., 1992. "What Ended the Great Depression?," The Journal of Economic History, Cambridge University Press, vol. 52(4), pages 757-784, December.
    6. Eichengreen, Barry, 1996. "Golden Fetters: The Gold Standard and the Great Depression, 1919-1939," OUP Catalogue, Oxford University Press, number 9780195101133.
    7. Harold L. Cole & Lee E. Ohanian, 2004. "New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 779-816, August.
    8. Edward C. Prescott, 1999. "Some observations on the Great Depression," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 23(Win), pages 25-29.
    9. Dimitri B. Papadimitriou & L. Randall Wray, "undated". "Fiscal Policy For the Coming Recession: Large Tax Cuts are Needed to Prevent a Hard Landing," Economics Policy Note Archive 01-2, Levy Economics Institute.
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