Criticism During the 1920s and the Recession of 1920–1921
Economists Milton Friedman and Anna Schwartz argued that the Federal Reserve mishandles monetary policy and exacerbated the Great Depression by failing to provide adequate liquidity to the banking system. “The Fed pursued an erroneously restrictive monetary policy, exacerbating the Great Depression.”— Friedman and Schwartz During the 1920–1921 recession, the decentralized structure of the Federal Reserve … Read more