The crisis proceeded to an “acute” deflationary stage due to decrease of prices under conditions of abrupt decrease of demand. It should be noted that, exactly in this moment (in September!) our home money authorities were to reestimate the budget urgently, as oil prices were evidently to start falling, just by the way.
It should be noted that all studies of the start of the Great Depression times, which were carried out within the monetary paradigm framework, suggested that the crisis began due to the FRS’s error, which had made the monetary policy unreasonably rigorous.