The Great Depression: “Holy Grail of Macroeconomics” J.K. Galbraith (1955) The Great Crash: 1929 Friedman and Schwartz (1963) The Great ContractionFriedman and Schwartz (1963) The Great Contraction Murray Rothbard (1963) America’s Great Depression Charles Kindleberger (1973) The World in Depression: Robert Lucas and Edward Prescott (1970s) Peter Temin (1978) Did Monetary Forces Cause the Great Depression? Hyman Minsky (1982) Can “It” Happen Again? Ben Bernanke (1983) Nonmonetary Effects of the Financial Crisis in Propagation of the Great Depression Peter Temin (1989) Lessons from The Great Depression Barry Eichengreen (1992) Golden Fetters: The Gold Standard and the Great Depression, Edward Prescott (1999) Some observations on the Great Depression

Monetarism in Theory and Practice Theory: M  P and Y in short – run M  P in long - run Friedman’s restated quantity theory Expectations augmented Phillips Curve  Vertical long – run Phillips Curve  “Monetary mischief” Practice: oppose Keynesian activism Monetary vs. fiscal policy: what matters? Inherent stability vs. instability of enterprise economy Policy: Long – run vs. short – run focus Varying policy lags … “too much too late” »Steady money growth as automatic stabilizer

Monetarism: Spreading the Word Karl Brunner 1916 – 1989 Allan Meltzer Early Joint Works: Meltzer with Brunner "Predicting Velocity: Implications for theory and policy", with K. Brunner, 1963, J of FinanceBrunner The Federal Reserve's Attachment to the Free Reserves Concept, with K. Brunner, 1964.Brunner An Alternative Approach to the Monetary Mechanism, with K. Brunner, 1964.Brunner "Some Further Investigations of Demand and Supply Functions for Money", with K. Brunner, 1964, J of FinanceBrunner "The Meaning of Monetary Indicators", with K. Brunner, 1967, in Horwich, editor, Monetary Process and Policy.Brunner "Economies of Scale in Cash Balances Reconsidered", with K. Brunner, 1967, QJE.Brunner "Liquidity Traps for Money, Bank Credit, and Interest Rates", with K. Brunner, 1968, JPEBrunner "The Nature of the Policy Problem" with K. Brunner, 1969, in K. Brunner, editor,Brunner Targets and Indicators of Monetary Policy. "The Uses of Money: Money in the Theory of an Exchange Economy" with K. Brunner, 1971, AERBrunner "Friedman's Monetary Theory" with K. Brunner, 1972, JPEBrunner "Money, Debt and Economic Activity" with K. Brunner, 1972, JPEBrunner "A Monetarist Framework for Aggregative Analysis" with K. Brunner, 1972, Kredit und KapitalBrunner Later Joint Works "Strategies and Tactics for Monetary Control", with K. Brunner, 1983, CROCHBrunner "Money and Credit in the Monetary Transmission Process", with K. Brunner, 1988, AERBrunner Money and the Economy: Issues in monetary analysis, with K. Brunner, 1989.Brunner Monetary Economics, with K. Brunner, 1989.Brunner Keynes's Monetary Theory: A different interpretation, "Money Supply", with K. Brunner, 1990, in Friedman and Hahn, editors, Handbook of Monetary EconomicsBrunner :::: Shadow Open Market Committee Journal of Money, Banking and Credit Carnegie-Rochester Conference Series on Public Policy Journal of Monetary Economics Major Works by Meltzer Keynes’ Monetary Theory: A Different Interpretation, A History of the Federal Reserve, volume 1, ,2002. Meltzer: I was very much a left-wing activist as a student.