1929–1933Reputable source · 2 sourcesWell documented
The Great Depression and the Fall of the Gold Standard
On the timeline · around 1929–1933 · The Modern Age of Money
What happened
The stock market crash of 1929 spiraled into the Great Depression, and waves of bank runs destroyed savings and money supply across the world. Economists came to blame the rigid gold standard for deepening the collapse, and one country after another — the United States in 1933 — abandoned it, freeing governments to manage their money to fight the slump.
Why it matters
The Depression shattered faith in the gold standard and the idea that money should be left to run itself. It ushered in an era of active government management of money and the economy that shapes central banking to this day.
Sources
- Federal Reserve History. Roosevelt's Gold Program · Reputable source
- Federal Reserve History. The Great Depression · Reputable source