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 provide liquidity and increase the quantity of money after the key banks fell, all the rest of the banks would not have fallen after the large ones did, and the money supply would not ha...

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

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 the financial system. ...

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

However, his claims were much argued and proven wrong by Milton Friedman who stated that the recession caused by the financial was not as deep as the one caused by the Great Depression, which led to the fall of the country's GDP by 25 to 30% and lasted much longer than the Great Recession. 1 Financial crisis of 2008 has left many nations crippled. ...

• Word Count: 1919
• Approx Pages: 8
• Has Bibliography
• Grade Level: High School