ABSTRACT
This chapter presents the path economies took into the 1930s, by examining the changing ideas of John Maynard Keynes over the crucial years and introduces the theoretical constructs that would increasingly guide world leaders. The decisions made early in the 1930s had a major impact on the speed with which post-crash economy would later begin to recover from the crash, often after adopting Keynesian ideas into their economic strategy. Countries such as Canada and the United States increasingly embraced the Keynesian approach as the 1930s continued by implementing compensatory policy postures increasing fiscal spending even as revenues were falling. Accordingly, the policy at the core of The General Theory is to combat the high rate of unemployment. The interconnectedness of the world's economies in the 1920s, particularly the debts that linked them together, meant that the effects of the crash would spread like a contagion between banks and stock markets.
