A Monetary History Of The United States, 1867-1960 May 2026

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".

They utilized a "narrative approach," analyzing nearly a century of historical data to show that changes in money often preceded changes in economic activity, rather than just reacting to them. "The Great Contraction": A New History of the Depression A Monetary History of the United States, 1867-1960

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: The work served as the foundation for ,

The inflationary impact of wartime financing and the eventual revival of independent monetary policy in the 1950s. Intellectual Legacy But thanks to you, we won't do it again"

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.