From New Deal Banking Reform to World War II Inflation

From New Deal Banking Reform to World War II Inflation

MILTON FRIEDMAN
ANNA JACOBSON SCHWARTZ
Copyright Date: 1980
Pages: 182
https://www.jstor.org/stable/j.ctt7zv95r
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  • Book Info
    From New Deal Banking Reform to World War II Inflation
    Book Description:

    This selection from the authors' A Monetary History of the United States, 1867-1960 (Princeton) describes the changes that were made in the banking structure and in the monetary standard following the great contraction of 1929 to 1933, the establishment of monetary policies after the New Deal period, and the development of inflation during World War II.

    Originally published in 1980.

    ThePrinceton Legacy Libraryuses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These paperback editions preserve the original texts of these important books while presenting them in durable paperback editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905.

    eISBN: 978-1-4008-5425-7
    Subjects: Business

Table of Contents

  1. Front Matter
    (pp. [i]-[v])
  2. Table of Contents
    (pp. [vi]-2)
  3. CHAPTER 1 New Deal Changes in the Banking Structure and Monetary Standard
    (pp. 3-75)

    The New Deal period offers a striking contrast in monetary and banking matters. On the one hand, monetary policy was accorded little importance in affecting the course of economic affairs and the policy actually followed was hesitant and almost entirely passive. On the other hand, the foundations of the American financial structure and the character of the monetary standard were profoundly modified. Both developments were direct outgrowths of the dramatic experiences of the preceding years. The apparent failure of monetary policy to stem the depression led to the relegation of money to a minor role in affecting the course of...

  4. CHAPTER 2 Cyclical Changes, 1933–41
    (pp. 76-128)

    As we have seen, severe contractions tend to be succeeded by vigorous rebounds. The 1929–33 contraction was no exception. Net national product rose no less than 76 per cent in current prices and 59 per cent in constant prices from 1933 to the next cyclical peak in 1937, or at average rates of growth of 14 and 12 per cent per year, respectively (see Chart 37). These are extraordinary rates of growth. Two other four-year periods show larger rises in income in current prices, but both are wartime periods, one, terminating just after World War I, the other, during...

  5. CHAPTER 3 World War II Inflation, September 1939–August 1948
    (pp. 129-174)

    The outbreak of war in Europe in September 1939 ushered in a period of inflation comparable to the inflations which accompanied the Civil War and World War I, though more protracted than either. By the postwar price peak nine years later (August 1948), wholesale prices had more than doubled, the implicit price deflator had somewhat less than doubled, the stock of money had nearly tripled, and money income had multiplied more than two-and-a-half-fold (see Chart 45). As this comparison indicates, velocity on net fell over the period. After an initial rise to 1942, it fell sharply to 1946 and then...