... addition to allowing the panics to reduce the U.S. money supply, the Federal Reserve also deliberately contracted the money supply and raised interest rates in September 1931. According to the monetarists Milton Friedman, Anna Schwartz and current chairman of Federal Reserve System Ben Bernanke at the time of Great Depression American central bank's policy making was really poor and it unwind loop of ... the crisis even more dramatically. Friedman claimed that, if the Fed had provided emergency lending to these key banks, or simply bought government securities on the open market to prov...

• Word Count: 1664
• Approx Pages: 7
• Has Bibliography
• Grade Level: Undergraduate

... Theory of Interest, Money, and Employment in 1936, he blamed the depression on the loss of business confidence that impaired investment spending. Nobel Laureat and University of Chicago emeritus economist Milton Friedman and his collaborator, Anna Schwartz, in A Monetary History of the United States, 1867 - 1960 also emphasize the role of Federal Reserve policy and the impact of specific monetary shocks to ... ...

• Word Count: 1109
• Approx Pages: 4
• Grade Level: Undergraduate