A Monetary History Of The United States, 1867-1960 May 2026

Populist efforts for bimetallism and the deflationary pressures of the late 19th century.

Changes in the money supply profoundly influence the economy's behavior, including fluctuations in income and prices. A Monetary History of the United States, 1867-1960

The book contends that had the Fed maintained a steady money supply, the severe contraction could have been avoided or significantly mitigated. Key Historical Episodes Analyzed The book covers several distinct monetary eras: Key Historical Episodes Analyzed The book covers several

In the long run, the growth of the money supply primarily affects the price level (inflation), while in the short run, it can lead to changes in real output. "The Great Contraction": A New History of the

Before this book, the prevailing Keynesian consensus held that monetary policy was largely ineffective, especially during deep downturns. Friedman and Schwartz challenged this by demonstrating that:

They utilized a "narrative approach," analyzing nearly a century of historical data to show that changes in money often preceded changes in economic activity, rather than just reacting to them. "The Great Contraction": A New History of the Depression

They identified four critical errors, including raising interest rates in 1931 to defend the gold standard and failing to act as a "lender of last resort" to stop banking panics.