The “Roaring ’20s” and the Crash of 1929

Case Solution

Robert F. Bruner, Scott Miller
Darden School of Business ()

In April 1930, the United States Secretary of the Treasury, Andrew Mellon, was reviewing recent events in the stock market as he prepared to attend a meeting of the Federal Reserve Board, which he presided over. In September and October 1929, the American stock market had fallen by about a third and then recovered somewhat. In response to the turmoil, the Federal Reserve (Fed) cut the discount rate in five steps from 6% to 3.71%, and market rates on various debt securities followed suit. With the stock markets rebounding, Mellon wondered what additional guidance to give the Fed and what action to take to the president and Congress. What have been the lessons of the recent market turmoil? What policy should the Fed follow? The answers to these questions depend on your agreement on the issues to be resolved. Councils from business, politics, the press, and experts of all stripes came in and depended on interpretations of the recent turmoil, which ranged from a regular cyclical correction to an international crisis. This case presents the events that led to the Great Depression and examines a variety of responses and interpretations from participants, contemporary observers, and economists and historians.

We don‘t have the case solution, but we pay up to $50 for yours!

  • Set a reminder to receive an email after your university‘s case study deadline.
  • Upload your case study solution. We will review it for quality.
  • Get your money via PayPal or to your bank account.