To explain the current consensus on the causes of the Depression, I will first describe the debate as it existed before 1980, and then discuss how the recent focus on international aspects of the Depression and the comparative analysis of the experiences of different countries have helped to resolve that debate.
6  BIS central bankers’ speeches  During this period, the key policy rates were increased gradually with a narrowing of the LAF interest rate corridor in order to reduce volatility in the overnight interest rate. While the level of inflation had increased, industrial production was showing a declining trend (Chart 3).