A severe problem [to some] in the late 1920's and into the 30's was a weak central government and a weak Fed. Keynesian economics was not yet available: prime the pump, introduce money into the economic stream when needed, remove it later, gently, during the next expansion when personal and corporate tax revenues expanded. Don't view the economy on an annual basis, as corporations do, but on a business-cycle basis.
The sharpies in Washing did the first, printed and shoved money into the economy and ignored the latter; gently removing it. And this has been the tune for the next 70 years. Ah well.
Deflation was the problem back then, and I suspect it may be again.
