A Monetary History of the United States, 1867-1960

WritingintheJune1965issueoftheEconomicJournal,HarryG.Johnsonbeginswithasentenceseeminglycalibratedtothescaleofthebookhesethimselftoreview:"Thelong-awaitedmonetaryhistoryoftheUnitedStatesbyFriedmanandSchwartzisineverysenseofthetermamonumentalscholarlyachievement--monumentalinitssheerbulk,monumentalinthedefinitivenessofitstreatmentofinnumerableissues,largeandsmall...monumental,aboveall,inthetheoreticalandstatisticaleffortandingenuitythathavebeenbroughttobearonthesolutionofcomplexandsubtleeconomicissues."FriedmanandSchwartzmarshaledmassivehistoricaldataandsharpanalyticstosupporttheclaimthatmonetarypolicy--steadycontrolofthemoneysupply--mattersprofoundlyinthemanagementofthenation'seconomy,especiallyinnavigatingseriouseconomicfluctuations.Intheirinfluentialchapter7,TheGreatContraction--whichPrincetonpublishedin1965asaseparatepaperback--theyaddressthecentraleconomiceventofthecentury,theDepression.AccordingtoHughRockoff,writinginJanuary1965:"IfGreatDepressionscouldbepreventedthroughtimelyactionsbythemonetaryauthority(orbyamonetaryrule),asFriedmanandSchwartzhadcontended,thenthecaseformarketeconomieswasmeasurablystronger."MiltonFriedmanwontheNobelPrizeinEconomicsin2000forworkrelatedtoAMonetaryHistoryaswellastohisotherPrincetonUniversityPressbook,ATheoryoftheConsumptionFunction(1957).