|Brocker I 396
Crises/Friedman: Friedman's thesis: The great global economic crisis of the early 1930s was not, as claimed by the academic school of Keynesianism, the result of immanent instability tendencies in the market economy, but of the failure of central bankers.
Brocker I 397
After the American stock market crash of 1929, they had not tried hard enough to prevent the collapse of the banks; the related thereto annihilitaion of the accounts had reduced the money supply by 20 percent and the collapse of demand for goods and economic activity was thus inevitable. FriedmanVsKeynesianism, FriedmanVsKeynes.
Solution/Friedman: A policy of steady money supply growth as a necessary and sufficient condition of macroeconomic stability, i.e. above all to preserve the value of money. However, this concept was only implemented in some countries in the early 1970s after Keynesian stability policy (a constant variation in taxes and government spending) failed due to the problem of rising inflation rates.
Peter Spahn „Milton Friedman, Kapitalismus und Freiheit“, in: Manfred Brocker (Hg.) Geschichte des politischen Denkens. Das 20. Jahrhundert. Frankfurt/M. 2018_____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. The note [Author1]Vs[Author2] or [Author]Vs[term] is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.
Econ Fried I
The role of monetary policy 1968
Geschichte des politischen Denkens. Das 20. Jahrhundert Frankfurt/M. 2018