About This ArticleVol. 33, No. 4
The goal of this article is to present the relevant facts about the recession of 1937 and assess the competing explanations.

The Recession of 1937—A Cautionary Tale
Last Updated: 11/09/09
The U.S. economy is beginning to emerge from a severe economic downturn precipitated by a financial crisis without parallel since the Great Depression. As thoughts turn to the appropriate path of future policy during the recovery, a number of economists have proffered the recession that began in 1937 as a cautionary tale. That sharp but short-lived recession took place while the U.S. economy was recovering from the Great Depression of 1929–33.