The Federal Reserve's deliberate effort to curb stock-market speculation by raising interest rates—starting in 1928—made US investment more attractive than overseas, reducing capital exports and causing countries dependent on American money (especially Germany) to suffer even before the 1929 crash.
causalpending
Speaker
Eric RauchwayEvidence Quote
“This is when you raise rates in the US, all of a sudden uh it becomes more attractive to invest in the US than overseas. Uh capital export falls and countries that depend on money coming out of the United States uh begin to suffer already even before the crash.”
Created: 6/17/2026, 10:09:28 AM
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