The Federal Reserve System Prevents the Great Depression After 19 29

After 19 29, the quantity of money had fallen by three %. A growing economy needs additional money in order to prevent deflation and problems. The federal reserve system was there to insure that this happened by supplying cash to the banks. If the bank of the united states had not happened to fail, some other bank would have failed and would have set off the runs. Once the runs started, the federal reserve could have prevented them from having the disastrous consequences they did.