The SS explanation of the crisis
SAO PAOLO | By Marcus Nunes via Historinhas | It comes from Martin Wolf´s “The Shifts and the Shocks” and is reviewed by Paul Krugman in the New York Review of Books. The following passage of his review nullifies the whole thing: In particular, Milton Friedman had convinced many economists that depression prevention is actually a fairly simple task, which can be carried out by technocrats at the central banks that control national money supplies. According to Friedman, the Great Depression occurred only because the Federal Reserve failed to do its job in the 1930s; if it had acted to rescue troubled banks and prevent a fall in the money supply, catastrophe would have been avoided.
