A Monetary History - Of The United States, 1867-1960

They identified four critical errors, including raising interest rates in 1931 to defend the gold standard and failing to act as a "lender of last resort" to stop banking panics.

The book contends that had the Fed maintained a steady money supply, the severe contraction could have been avoided or significantly mitigated. Key Historical Episodes Analyzed The book covers several distinct monetary eras: 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 transition from private clearinghouses to a centralized

The transition from private clearinghouses to a centralized monetary authority. They identified four critical errors

The aftermath of the Civil War and the return to the gold standard.

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.