The Federal Reserve and the Great Depression

Prof. DeLong.... It has been my understanding for a long time that the Fed essentially ALLOWED America's money supply to contract by 1/3 between 1929 and 1933. But, I was recently confronted by someone who insists that the contraction took place despite a valiant effort by the Fed not to let it happen. I was delighted, in reading your work on the subject, to find text which I believe supports my contention. Unfortunately, I have yet to find anyone else who agrees. Do you know of any other internet resources which support your (and my) claim? Thanks for your help. David Davenport

[ Previous | Next ]