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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.
The causes of the Great Depression in the early 20th Century are a matter of active debate among economists, and are part of the larger debate about economic crisis, although the common belief is that the Great Depression was triggered by the 1929 crash of the stock market.he recession of 1937â38, which slowed down economic recovery from the great depression, is explained by fears of the population that the moderate tightening of the monetary and fiscal policy in 1937 would be first steps to a restoration of the pre March 1933 policy regime.