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How did the overprinting of currency lead to the Roaring Twenties and the Stock Marcet Crash?

User Rosemond
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Answer:

Due to this, there was a major oversupply of US currency, and the value declined sharply and rapidly. As a result, the stock market crashed in 1929, starting a worldwide meltdown.

User Jeffm
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Answer:

Not too simple.

Step-by-step explanation:

Printing money makes the dollar worth less, as the more dollars the less each one means in physical gold. So, the more money printed the less the amount meant, meaning that inflation went through the roof. As inflation rises, people take out loans and what-not that will never be repaid. Thus, the banks fell apart with no real value in the depreciated dollar and the economy collapsed under it.

User Iwan Wijaya
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