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.
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:
The book's most famous section, Chapter 7 (often published separately as The Great Contraction ), reinterpreted the Great Depression.
The aftermath of the Civil War and the return to the gold standard.
The transition from private clearinghouses to a centralized monetary authority.
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.
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: A Monetary History of the United States, 1867-1960
The book's most famous section, Chapter 7 (often published separately as The Great Contraction ), reinterpreted the Great Depression. In the long run, the growth of the
The aftermath of the Civil War and the return to the gold standard. In the long run
The transition from private clearinghouses to a centralized monetary authority.