Published in 1963, by Milton Friedman and Anna J. Schwartz is considered one of the most influential economics books of the 20th century. It fundamentally shifted the economic consensus by arguing that the money supply is a primary driver of economic activity and stability. The Core Thesis: "Money Matters"
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 A Monetary History of the United States, 1867-1960
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. Published in 1963, by Milton Friedman and Anna J
The authors argued that the Depression was not a "market failure" but a "government failure." They blamed the Federal Reserve for allowing the money supply to shrink by one-third between 1929 and 1933. The Core Thesis: "Money Matters" They utilized a