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To: Les H who wrote (106631)	6/5/2001 12:57:46 PM
From: Les H	Respond to of 436258

Liquidity fails to fuel Japan growth (money sloshing in the Dow?) japantimes.co.jp

To: Les H who wrote (106631)	6/5/2001 1:02:34 PM
From: Ilaine	Read Replies (3) \| Respond to of 436258

The most important work on the Great Depression, IMO, is contained in "A Monetary History of the United States," by Nobel prize winning economist Milton Friedman, and Anna Jacobsen Schwartz. Friedman & Schwartz presented conclusive research to show that the Federal Reserve deliberately shrank the money supply before and during the Great Depression, in an effort to "purge speculative excess" - they argued that instead of Great Depression, it ought to be called the Great Contraction. So in answer to your question, was the Fed trying to print its way out of the Great Depression, the answer is no, it actually helped cause and exacerbate the Great Depression by shrinking the money supply. I commend the book quite highly, but you can't get it at the Fairfax library, so you'll need to buy it. I got a very nice used copy from one of Amazon.com's used book dealers. The reparations also were important, but what most people don't know is that we (the US) actually loaned the Germans more money than they ever paid as reparations. The Germans actually came out ahead on the deal.