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Step 32 of 106

Causes (broadly)

  • Overproduction relative to consumer purchasing power in the 1920s
  • Speculative excess in financial markets
  • Weak banking systems with inadequate regulation
  • Reparations and war debts that distorted international flows of capital
  • Protectionist tariffs (especially the U.S. Smoot-Hawley Tariff of 1930) that strangled trade
  • Collapse of the gold standard
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