FIGURE 3 M1 and the Monetary Base, 1929-1933Source: Milton Friedman and Anna Jacobson Schwartz, A Monetary History of the United States, 1867-1960 (Princeton, NJ: Princeton University Press, 1963), p. 333.during bank panics can be in the determination of the money supply. It also illustrates that the Fed’s job of conducting monetary policy can be complicated by depositor and bank behavior.SUMMARY
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