How to prevent another economic depression:
As all Americans are troubled by the idea of another “Great Depression”, economists made a list of policies that might avoid that:
Expansionary monetary policy
An expansionary monetary policy usually involves cutting interest rates in order to encourage investment and borrowing. As interest rates are lower, consumers will be able to enjoy their money more (because of added value), and they’ll be encouraged to spend more.
Expansionary fiscal policy
An expansionary fiscal policy basically means increasing the overall government budget, reducing taxes, or even both. Tax reduction offers consumers a disposable income, which encourages spending.
