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The Causes of the Great Depression: A Retrospective. By Kenneth Matziorinis. Introduction. During the 1930s the world experienced a cataclysmic economic collapse, the likes of which that had never been seen before. It was unlike previous. âdepressionsâ when economic activity would always recover following few years.
Inevitably, these measures would lead the causes of the Great Depression. Although the causes are greatly debated, certain causes are most notable. Causes such as false prosperity, the stock market crash, the banking crisis, unemployment and trade collapse are significant in understanding such a historical event. false prosperity. False Prosperity prior to the Great Depression referred to a false sense of the economy thriving.