On Sat, 2 Dec 1995, Brad De Long wrote: 
 
> >an 'invasion'). 
>  
> Hmmm... 
>  
> Milton Friedman said (roughly) that it was obvious that criminally inept 
> government policy--and not the malfunctioning of a near-laissez-faire 
> economic system--caused the Great Depression: monetary policy was much, 
> much too tight over 1930-1933; nothing happening before 1930 made a 
> _Great_Depression_ inevitable. 
>  
> Friedrich von Hayek said (roughly) that it was obvious that criminally 
> inept government policy--and not the malfunctioning of a 
near-laissez-faire 
> economic system--caused the Great Depression: monetary policy was much, 
> much too loose over 1925-1929; nothing happening after 1929 could have 
> avoided a _Great_Depression_. 
>  
>  
 
Couldn't they *both* be right?  Ie. first an overly loose monetary  
policy (and misinvestment), followed by an overly tight one (and credit  
crunch)? 
 
 
 
 
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James D. Doepp 
University of Miskolc (Hungary) 
Department of Economic Theory 
 
 
 
"Mr Turnbull had predicted evil consequences,... 
and was now doing the best in his power to bring 
about the verification of his own prophecies." 
 
A. Trollope 
 
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