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.

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

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. In the long run, the growth of the