Economic Crises in the 20th century: Brief Review and Comparison

This study aims to review major economic crises throughout the centuries, in order to see what valuable lessons can be learned from re-examining them. As the 20th century was marked by tremendous economic turmoils, that changed the world economy of today, we will focus on the Great Depression of 1929 and the Oil Crisis of 1973, comparing them also with the 21st century global crisis of 2008. Through a lens of historic and periodic analysis, content analysis, and comparative analysis, this study seeks to unravel the intricacies of these financial crises, their similarities, differences and what went wrong in each case and what role the Federal Reserve’s System played in in shaping economic outcomes. The findings underscore the significance of macroeconomic imbalances, poorly regulated financial markets, and inadequate risk management in amplifying the impact of economic events. Policymakers' responses and reforms after each crisis are examined, highlighting the recurring theme of claims of increased preparedness for future scenarios. The study concludes by urging a re-evaluation of the Federal Reserve's policies, emphasizing the need for a proactive and informed approach to address potential future crises and advocating for a better understanding of the global impact of national policies.