Study Case: Why you've Never Heard of the Great Depression of 1920
Application: The video presents arguments against Keynesian Approach to managing the economy and makes the case for hands-off approach based on the Austrian Theory of Business Cycle.
Watch the "The Great Depression: What We Can Learn from It Today"
Presented by Thomas E. Woods, Jr. in 2009 and answer the following questions:
According to Thomas E. Woods, what factors contributed to the economy recovering from the 1920 Great Depression?
Explain why the school of Austrian Economics dislike Interventions, say by the Federal Reserve in the economy to manage business cycles? Explain how this fundamental position of the Austrian school is related to the Austrian Business Cycle theory.
In your view, what are the short term and long term advantages/disadvantages of the hands-off approach to the economic business cycle. Explain your view.