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.

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

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 book's most famous section, Chapter 7 (often

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 authors argued that the Depression was not

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"

The work served as the foundation for , emphasizing stable monetary rules over discretionary government management. It has had a lasting impact on central banking; former Fed Chairman Ben Bernanke famously conceded to the authors on behalf of the Federal Reserve: "You're right, we did it. We're very sorry. But thanks to you, we won't do it again".