Macroeconomic tools explaining the Great Depression of the 1930s The Great Depression is considered as the deepest, longest and most severe economic depression that hit the Western countries from 1929 to 1939. The effects were experienced across the world and it one of the worst economic calamities in the world’s history. In the depressions that had occurred previously like in the 1870s and 1890s, the real per capita gross domestic product (GDP) managed to return to their former levels within a span of five years (Christiano & Motto, 2004). However, the real per capita GDP in the 1930’s Great Depression was still lower than its 1929 level even after a period of ten years.