Economy in 1940s

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Economy in 1940s

• Andrew Davitt
• Jerome Franks

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Prime Interest Rates

• Prime Interest Rate for 1940-1946 remained at
  1.5
• In 1948, it was 1.75
• In 1950, it was 2.0

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Money

• Supply of Money (M1) in billions
• 1940 39.7
• 1942 55.4
• 1944 85.3
• 1946 106.5
• 1948 112.3
• 1950 114.1

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Government Spending

• Drastic change in government spending from 9
  billion in 1939 to 98 billion in 1945
• In the 1940s, there were four major sources of
  credit
• Banks
• Life insurance companies
• Individuals and local businesses
• The Federal Government

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