The 18-month depression following WWI is now forgotten. But the U.S. could benefit from a look at this 1920-1921 economic plunge, says James Grant, author most recently of The Forgotten Depression and long-time publisher of Grant’s Interest Rate Observer.
In this talk, Grant observes that the U.S. government took next to no role in the economy, instead balancing budgets and raising rates. People suffered, but the depression ended quickly, says Grant. The lack of understanding and data around economics was almost an advantage for the U.S., says Grant.