ABSTRACT
The great depression deals with a mortal blow to the international order to solve their economic problems through nationalistic "third way" policies that push the costs of recovery onto other countries. Economic historians have to reach the consensus that is responsible for the downturn. Exports amounts to less than 10 percent of gross national product, making the country more or less immune to foreign economic shocks. Banks and businesses found themselves short of cash, experiencing what economists call a "liquidity crisis". The spread of the crisis to German banks, called the massive amounts of capital where US investors are sent to Germany. George Harrison of the New York Federal Reserve supports the proposal, and Hoover suggested reconstituting the World War foreign debt commission for this purpose. Congress and the public were uniformly hostile to the idea after all, any reduction in war-debt payments would further increase the already massive federal deficit unless it offsets by even less popular taxes.
