1930s Quote by Milton Friedman
“The Depression, which started in 1929 was rather mild from 1929 to 1930. And, indeed, in my opinion would have been over in 1931 at the latest had it not been that the Federal Reserve followed a policy which led to bank failures, widespread bank failures, and led to a reduction in the quantity of money.”
About This Quote
Source Speech: Interview on Economic History, 1975
The Great Depression could have ended sooner if the Federal Reserve had avoided policies that caused bank failures and reduced money supply.
In simple terms: Bad Fed policies prolonged the Depression.
Key Takeaway
Avoid harmful monetary policies.
Themes
economics
history
policy
finance
monetary
Mood
analytical
critical
historical
Type
commentary
explanatory
educational
When to use this quote
- central banking
- policy design
- financial regulation
- economic forecasting
Key Concepts
Keynesianism
monetary policy
financial stability
Questions to Reflect On
- What alternative policies could have prevented the downturn?
- How do modern central banks avoid similar errors?
A Different Perspective
Policy missteps can worsen crises.
