Causes of the Great Depression
Second, there are the monetarists, who believe that the Great Depression started as an ordinary recession, but that significant policy mistakes by monetary authorities (especially the Federal Reserve) caused a shrinking of the money supply which greatly exacerbated the economic situation, causing a recession to descend into the Great Depression. Related to this explanation are those who point to debt deflation causing those who borrow to owe ever more in real terms.
Fascism
The conditions of economic hardship caused by the Great Depression brought about an international surge of social unrest. According to historian Philip Morgan, "the onset of the Great Depression...was the greatest stimulus yet to the diffusion and expansion of fascism outside Italy". Fascist propaganda blamed the problems of the long depression of the 1930s on minorities and scapegoats: “Judeo-Masonic-bolshevik” conspiracies, left-wing internationalism and the presence of immigrants.