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Milton Friedman - A Monetary History of the United States, 1867-1960

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A Monetary History of the United States, 1867-1960: summary, description and annotation

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Writing in the June 1965 issue of theEconomic Journal, Harry G. Johnson begins with a sentence seemingly calibrated to the scale of the book he set himself to review: The long-awaited monetary history of the United States by Friedman and Schwartz is in every sense of the term a monumental scholarly achievement--monumental in its sheer bulk, monumental in the definitiveness of its treatment of innumerable issues, large and small . . . monumental, above all, in the theoretical and statistical effort and ingenuity that have been brought to bear on the solution of complex and subtle economic issues.
Friedman and Schwartz marshaled massive historical data and sharp analytics to support the claim that monetary policy--steady control of the money supply--matters profoundly in the management of the nations economy, especially in navigating serious economic fluctuations. In their influential chapter 7,The Great Contraction--which Princeton published in 1965 as a separate paperback--they address the central economic event of the century, the Depression. According to Hugh Rockoff, writing in January 1965: If Great Depressions could be prevented through timely actions by the monetary authority (or by a monetary rule), as Friedman and Schwartz had contended, then the case for market economies was measurably stronger.
Milton Friedman won the Nobel Prize in Economics in 1976 for work related toA Monetary Historyas well as to his other Princeton University Press book,A Theory of the Consumption Function(1957).

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NATIONAL BUREAU OF ECONOMIC RESEARCH Studies in Business Cycles Titles 1 - photo 1
NATIONAL BUREAU OF ECONOMIC RESEARCH

Studies in Business Cycles

(Titles 1 through 12 that are not listed below in the series are available through the National Bureau of Economic Research.)

6. Personal Income during Business Cycles, by Daniel Creamer with the assistance of Martin Bernstein

9. Federal Receipts and Expenditures During Business Cycles, 1879-1958 by John M. Firestone

10. Business Cycle Indicators: Volume I, Contributions to the Analysis of Current Business Conditions; Volume II, Basic Data on Cyclical Indicators, edited by Geoffrey H. Moore

12. A Monetary History of the United States, 1867-1960, by Milton Friedman and Anna Jacobson Schwartz

A Monetary History
of the
United States
1867-1960

MILTON FRIEDMAN
ANNA JACOBSON SCHWARTZ

A Monetary History of the United States 1867-1960 - image 2

A STUDY BY THE
NATIONAL BUREAU OF ECONOMIC RESEARCH, NEW YORK

A Monetary History of the United States 1867-1960 - image 3

PUBLISHED BY
PRINCETON UNIVERSITY PRESS, PRINCETON

Copyright 1963, by National Bureau of Economic Research

All Rights Reserved

L.C. Card: 63-7521

ISBN 0-691-00354-8 (paperback edn.)

ISBN 0-691-04147-4 (hardcover edn.)

First Princeton Paperback Edition, 1971

Fifth Hardcover Printing, 1971

Ninth Paperback Printing, 1993

25 27 29 30 28 26 24

Princeton University Press books are printed on acid-free paper and meet the guidelines for permanence and durability of the Committee on Production Guidelines for Book Longevity of the Council on Library Resources

Printed in the United States of America

ISBN-13: 978-0-691-00354-2 (pbk.)

ISBN-10: 0-691-00354-8 (pbk.)

NATIONAL BUREAU OF ECONOMIC RESEARCH
1963

OFFICERS

Albert J. Hettinger, Jr., Chairman
Arthur F. Burns, President
Frank W. Fetter, Vice-President
Donald B. Woodward, Treasurer
Solomon Fabricant, Director of Research
Geoffrey H. Moore, Associate Director of Research
Hal B. Lary, Associate Director of Research
William J. Carson, Executive Director

DIRECTORS AT LARGE

Robert B. Anderson, New York City
Wallace J. Campbell, Nationwide Insurance
Erwin D. Canham, Christian Science Monitor
Solomon Fabricant, New York University
Marion B. Folsom, Eastman Kodak Company
Crawford H. Greenewalt, E. I. du Pont de Nemours & Company
Gabriel Hauge, Manufacturers Hanover Trust Company
A. J. Hayes, International Association of Machinists
Albert J. Hettinger, Jr., Lazard Frres and Company
Theodore V. Houser, Committee for Economic Development
Nicholas Kelley, Kelley Drye Newhall Maginnes & Warren
H. W. Laidler, League for Industrial Democracy
George B. Roberts, Larchmont, New York
Harry Scherman, Book-of-the-Month Club
Boris Shishkin, American Federation of Labor and Congress of Industrial Organizations
George Soule, South Kent, Connecticut
Joseph H. Willits, Armonk, New York
Donald B. Woodward, A. W. Jones and Company

DIRECTORS BY UNIVERSITY APPOINTMENT

V. W. Bladen, TorontoHarold M. Groves, Wisconsin
Francis M. Boddy, MinnesotaGottfried Haberler, Harvard
Arthur F. Burns, ColumbiaMaurice W. Lee, North Carolina
Lester V. Chandler, PrincetonLloyd G. Reynolds, Yale
Melvin G. de Chazeau, CornellPaul A. Samuelson, Massachusetts
Frank W. Fetter, NorthwesternInstitute of Technology
R. A. Gordon, CaliforniaTheodore W. Schultz, Chicago

Willis J. Winn, Pennsylvania

DIRECTORS BY APPOINTMENT OF OTHER ORGANIZATIONS

Percival F. Brundage, American Institute of Certified Public Accountants
Nathaniel Goldfinger, American Federation of Labor and Congress of Industrial Organizations
Harold G. Halcrow, American Farm Economic Association
Murray Shields, American Management Association
Willard L. Thorp, American Economic Association
W. Allen Wallis, American Statistical Association
Harold F. Williamson, Economic History Association
Theodore O. Yntema, Committee for Economic Development

DIRECTORS EMERITI

Shepard Morgan, Norfolk, Connecticut N. I. Stone, New York City Jacob Viner, Princeton, New Jersey

RESEARCH STAFF

Moses AbramovitzVictor R. FuchsJacob Mincer
Gary S. BeckerH. G. GeorgiadisIlse Mintz
William H. Brown, Jr.Raymond W. GoldsmithGeoffrey H. Moore
Gerhard BryChallis A. Hall,Jr. Roger F. Murray
Arthur F. BurnsMillard HastayRalph L. Nelson
Phillip CaganDaniel M. HollandG. Warren Nutter
Joseph W. ConardThor HultgrenRichard T. Selden
Frank G. DickinsonF. Thomas JusterLawrence H. Seltzer
James S. EarleyC. Harry KahnRobert P. Shay
Richard A. EasterlinIrving B. KravisGeorge J. Stigler
Solomon FabricantHal B. LaryNorman B. Ture
Albert FishlowRobert E. LipseyHerbert B. Woolley
Milton FriedmanRuth P. MackVictor Zarnowitz
RELATION OF THE DIRECTORS TO THE WORK AND PUBLICATIONS OF THE NATIONAL BUREAU OF ECONOMIC RESEARCH

1. The object of the National Bureau of Economic Research is to ascertain and to present to the public important economic facts and their interpretation in a scientific and impartial manner. The Board of Directors is charged with the responsibility of ensuring that the work of the National Bureau is carried on in strict conformity with this object.

2. To this end the Board of Directors shall appoint one or more Directors of Research.

3. The Director or Directors of Research shall submit to the members of the Board, or to its Executive Committee, for their formal adoption, all specific proposals concerning researches to be instituted.

4. No report shall be published until the Director or Directors of Research shall have submitted to the Board a summary drawing attention to the character of the data and their utilization in the report, the nature and treatment of the problems involved, the main conclusions, and such other information as in their opinion would serve to determine the suitability of the report for publication in accordance with the principles of the National Bureau.

5. A copy of any manuscript proposed for publication shall also be submitted to each member of the Board. For each manuscript to be so submitted a special committee shall be appointed by the President, or at his designation by the Executive Director, consisting of three Directors selected as nearly as may be one from each general division of the Board. The names of the special manuscript committee shall be stated to each Director when the summary and report described in paragraph (4) are sent to him. It shall be the duty of each member of the committee to read the manuscript. If each member of the special committee signifies his approval within thirty days, the manuscript may be published. If each member of the special committee has not signified his approval within thirty days of the transmittal of the report and manuscript, the Director of Research shall then notify each member of the Board, requesting approval or disapproval of publication, and thirty additional days shall be granted for this purpose. The manuscript shall then not be published unless at least a majority of the entire Board and a two-thirds majority of those members of the Board who shall have voted on the proposal within the time fixed for the receipt of votes on the publication proposed shall have approved.

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