Can economy adjust more quickly today than back during the Great Depression?

Answer 1

yes -the factors are different. In the Great Depression all transactions for money where based on the Gold standard. Meaning a dollar was worth gold in the bank (Fort Knox). When you extended your credit there was nothing real to back up your loan as a rule.
Today the Gold standard is not used -we base econmics on the real and precieved values of the global state of business and assets. This is good and bad - however recovery can be done by moving assets. We also are Not suppose to extend credit the way it was done during the Drepression. Buying on speculation with little or no backing.

Answer 2

Yup, fella it certainly can. Thank the Great Depression for that! Resulting in tighter regulations and creation of a little agency referred to as the SEC. Matter of fact were adjusting recently and right now - thanks to all those idiot and greedy investors who got fat on sub-prime mortgages until the bottom recently started falling out. Yep as those investment firms how that's working out for 'em? Merrill Lynch is feeling the noose a bit but this isn't a economic failure, just a correction and by some a rather fast one.

Answer 3

No. The financial systems react faster because of improved communications but the time for a firms decision to invest in plant and equipments to actual production is probably longer because of the increased regulation and interaction with the world.

Answer 4

I think today's economists have a better idea on influences, and what it takes to stimulate or depress the economy. This could result in more rapid corrections and application of stimulants when they detect the economy getting weak.

Answer 5

don't bet on it!
Besides, the faster it reacts, the more labile, thus, problematic.