Did sudden increases in raw material prices, such as occurred with copper during the early days of electrification in 1907 or oil in the 1970s, likely play some role in inducing recessions?

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<a href="http://qanda.encyclopedia.com/question/did-sudden-increases-raw-material-prices-such-occurred-copper-during-early-days-electrification-1907-oil-1970s-likely-play-some-role-inducing-recessions-615670.html" >Did sudden increases in raw material prices, such as occurred with copper during the early days of electrification in 1907 or oil in the 1970s, likely play some role in inducing recessions?</a>

Banking panics were a common characteristic of recessions as late as the Great Depression. The resulting bank failures surely exacerbated contractionary tendencies, for people could not spend money they had lost. The question is how great this contractionary tendency was relative to the size of particular recessions. Likewise, stock market crashes can have a contractionary impact; these dramatic events may receive more attention than warranted by their economic impact. More generally, changes in interest rates and money supply often are associated with cycles and are attributed an important causal role. The 1929 crash has often been blamed for inducing the Great Depression, although the crash of 1987 was not associated with a serious economic downturn.