Abstract
Perhaps one of the most famous economic time series graphs of all time is the US stock market boom and crash of the 1920s and 1930s. What can be seen is a large run-up in prices and then a large reversal. The temptation many have succumbed to is to see the boom and bust as prima facie evidence of an overvaluation. Although such an interpretation would be correct to a certain extent, it does not offer explanation as to how changes in the economy and investors’ ideas may have driven the changes, which can be verified scientifically.
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© 2014 Ali Kabiri
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Kabiri, A. (2014). The US Economy and the Financial System. In: The Great Crash of 1929. Palgrave Studies in the History of Finance. Palgrave Macmillan, London. https://doi.org/10.1057/9781137372895_4
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DOI: https://doi.org/10.1057/9781137372895_4
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-47637-4
Online ISBN: 978-1-137-37289-5
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)