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.
Causes of the Great Depression
Among the causes of the decline in the population growth rate during the 1920s were a declining birth rate after 1910 and reduced immigration. The decline in immigration was largely the result of legislation in the 1920s placing greater restrictions on immigration. In 1921, Congress passed the Emergency Quota Act, followed by the Immigration Act of 1924.