What the Great Depression of the 1930s taught us

The spread of COVID-19 has brought large parts of the global economy to a halt in one fell swoop. Production is being shut down, supply chains are being decelerated and the demand shock is setting in. In a fluid transition, the medical crisis caused a devastating economic one. Despite the singularity of the events, similarities to the world economic crisis after 1929 cannot be overlooked.

In the past, the economies of the western world were repeatedly exposed to major turbulence. However, probably no economic historian would think of an example…