The 1920–1921 crash commonly called the Forgotten Depression occurred in the United States.
After World War I, the United States experienced a sharp recession marked by falling prices, reduced production, unemployment, and declines in stock and commodity markets. The downturn began in 1920 and was severe, but it lasted much less time than the Great Depression of the 1930s.
The episode is often described as forgotten because public memory and economic history focus more heavily on the 1929 crash. It nevertheless affected agriculture, manufacturing, and finance, especially as wartime demand weakened and deflation increased the real burden of debt.
The Federal Reserve raised interest rates to combat inflation, a policy often discussed in explanations of the downturn. The recovery that followed helped set the stage for the prosperous 1920s, although the decade's expansion later produced vulnerabilities that were exposed by the 1929 Wall Street Crash.