The great depression was caused by a sudden, significant contraction of the currency supply which occurred as a result of people realizing that banks did not hold enough currency to pay all depositors, this triggered panic and bank runs and then subsequent over-hoarding of currency by individuals.
The real problem was not a fixed currency supply, it was the sudden contraction in the currency supply which caused people to over-react and hold onto currency too tightly. It self-corrected eventually as the panic subsided and investments resumed.
If banks had enough deposits to pay all depositors, bank runs would not have mattered, there would not have been a panic and there would not have been a contraction in the currency supply and there would not have been an economic depression.
I don't know if pure capitalism can work without any regulation but manipulating the money supply is definitely not the solution.
The real problem was not a fixed currency supply, it was the sudden contraction in the currency supply which caused people to over-react and hold onto currency too tightly. It self-corrected eventually as the panic subsided and investments resumed.
If banks had enough deposits to pay all depositors, bank runs would not have mattered, there would not have been a panic and there would not have been a contraction in the currency supply and there would not have been an economic depression.
I don't know if pure capitalism can work without any regulation but manipulating the money supply is definitely not the solution.