The Federal Reserve's response to the Great Depression was controversial from "summary" of A Monetary History of the United States, 1867-1960 by Milton Friedman,Anna Jacobson Schwartz
The response of the Federal Reserve to the Great Depression elicited a significant amount of controversy and debate among economists and policymakers alike. Friedman and Schwartz argue that the Federal Reserve's actions, or lack thereof, played a crucial role in exacerbating the severity of the economic downturn. They contend that the central bank's failure to act decisively and provide sufficient liquidity to the financial system led to a contraction in the money supply, which in turn deepened the deflationary spiral gripping the economy. The authors point to the Federal Reserve's adherence to the gold standard as a key factor in its reluctance to expand the money supply during...
Similar Posts
Market participants seek to hedge against risks
Market participants are constantly exposed to various risks in the financial markets. These risks can arise from fluctuations i...
Reduce unnecessary expenses
To survive and thrive in a deflationary depression, it is imperative to cut back on unnecessary expenses. This concept is cruci...
Money is essential for modern economies
Money plays a critical role in modern economies, acting as a medium of exchange that facilitates transactions between buyers an...
Unemployment caused by insufficient demand
Involuntary unemployment is attributed to a deficiency of effective demand. It is the outcome of a situation where the total in...
The relationship between monetary variables and real economic activity is complex
The intricate interplay between monetary variables and real economic activity has long been a subject of fascination and debate...
The lessons from history can help inform future monetary policy decisions
The study of monetary history provides valuable insights that can guide future monetary policy decisions. By examining past tre...
Joseph Stiglitz's criticisms of globalization and income inequality have sparked important debates in the field of economics
Joseph Stiglitz, a prominent economist, has raised significant concerns regarding the impacts of globalization on income inequa...
Currency speculation can lead to market inefficiencies
Currency speculation can, in fact, lead to market inefficiencies. When individuals or institutions engage in speculative activi...