Severity of the great depression on the federal reserve

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During the Great Depression the United States remained on the international gold standard longer than other countries. This meant that the United States was committed to maintaining fixed exchange rate at the onset of the Great Depression. The U.S. dollar was pegged to the value of gold, along with other major currencies, including British pound, French franc, and so on. Many researchers have blamed the severity of the Great Depression on the Federal Reserve and its failure to react to economic conditions in 1929 and 1930.

How does the policy trilemma applies to this situation.

Reference no: EM131994034

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