What was the 1920–1921 U.S. stock-market collapse associated with a sharp postwar recession called?

The 1920–1921 U.S. stock-market collapse associated with a sharp postwar recession was part of the Depression of 1920–1921. The downturn followed the end of World War I and a rapid reversal from wartime demand, inflation, and elevated commodity prices.

U.S. production, employment, farm incomes, and prices fell quickly. The Federal Reserve had raised interest rates to combat inflation, and the resulting tightening contributed to financial and economic contraction. Unlike the Great Depression, the 1920–1921 downturn was comparatively brief, with recovery beginning within roughly two years.

The episode is sometimes overlooked because it occurred between World War I and the prosperous 1920s. It should not be confused with the Great Depression, which began after the 1929 stock-market crash and became a much longer, more internationally severe crisis.