Inadequate monetary policies: The Federal Reserve initially adopted a restrictive monetary policy by raising interest rates in an attempt to control inflation and protect the dollar. However, this had the effect of further reducing the money supply and worsening deflation.
Inadequate monetary policies: The Federal Reserve initially adopted a restrictive monetary policy by raising interest rates in an attempt to control inflation and protect the dollar. However, this had the effect of further reducing the money supply and worsening deflation.