Description of a Great Depression
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Mild Gloom and Shock to Confidence
Slightly Reduced Velocity of Circulation
Debt Liquidation
Money Interest on Safe Loans Falls
But Money Interest on Unsafe Loans Rises
Distress Selling
More Gloom
Fall in Security Prices
More Liquidation
Fall in Commodity Prices
Real Interest Rises, Real Debts Increase
More Pessimism and Distrust
More Liquidation
More Distress Selling
More Reduction in Velocity
More Distress Selling
Contraction of Deposit Currency
Further Dollar Enlargement
Reduction in Net Worth
Increase in Bankruptcies
More pessimism and Distrust
More Slowing in Velocity
More Liquidation
Decrease in Profits
Increase in Losses
Increase in Pessimism
Slower Velocity
More Liquidation
Reduction in Volume of Stock Trading
Decrease in Construction
Reduction in Output
Reduction in Trade
Unemployment
More Pessimism
Hoarding
Runs on Banks
Banks Curtailing Loans for Self-Protection
Banks Selling Investments
Bank Failures
Distrust Grows
More Hoarding
More Liquidation
More Distress Selling
Further Dollar Enlargement
The typical picture of the cross-currents of a depression described
by Irvin Fisher in The Debt-Deflation Theory of Great Depressions
in Econometrica, 1933
