By today's standards of economics which style of economics put the USA and the world into what became the Great Depression liberal or conservative?

Answer 1

Liberal/Conservative tags typically apply to social issues. The Great Depression was a culmination of multiple economic factors. The Federal Reserve was new and had little experience regulating money supply, inflation, and liquidity in banks. Poor decisions by market investors led to a bubble and burst. Various other issues led to the depression. A "Perfect Storm" if you will. Economists are divided about the issue of liberal versus conservative economics. The true term would be regulation vs. deregulation. The Fed cut rates too early to combat low unemployment, but inflation went out of control - hence, depression. Today, Ben Bernanke is attempting to find a happy median between combating unemployment and regulating inflation. It's difficult, however, because inflation and unemployment are negatively correlated (with the exception of stagflation). I would recommend reading Ben Bernanke's dissertation on what caused the Great Depression.