Latest Issue

Inefficient markets

Lessons of depression

By Edward Chancellor   September 2002

Lessons of depression

“Sir” Alan Greenspan, the chairman of the Federal Reserve, allowed the stock market bubble to inflate because he thought he could control its aftermath. This view derives from a belief that the depression of the 1930s was not caused by the preceding speculative boom but was the result of poor policies by the government and central bank. Following the continuing rout in the stock market and signs that the US economic recovery is petering out, we have reached the point when this historical thesis is about to be severely tested.

In a recently published book, Rethinking the…

Register today to continue reading

You’ve hit your limit of three articles in the last 30 days. To get seven more, simply enter your email address below.

You’ll also receive our free e-book Prospect’s Top Thinkers 2020 and our newsletter with the best new writing on politics, economics, literature and the arts.

Prospect may process your personal information for our legitimate business purposes, to provide you with newsletters, subscription offers and other relevant information.

Click here to learn more about these purposes and how we use your data. You will be able to opt-out of further contact on the next page and in all our communications.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

We want to hear what you think about this article. Submit a letter to

More From Prospect