Anna SchwartzEdit
Anna Schwartz (1920–2012) was an American economist whose collaborative work with Milton Friedman helped redefine modern macroeconomic thought. Their joint product, A Monetary History of the United States, 1867–1960, is widely regarded as a landmark in economic history and policy analysis. The book argues that the quantity of money in circulation and the behavior of the banking system, particularly the actions of the Federal Reserve, were central to long-run economic performance and to episodes of severe instability such as the Great Depression. By foregrounding monetary forces, Schwartz and Friedman shifted the policy conversation toward the importance of predictable monetary rules, central bank independence, and the dangers of policy missteps in times of crisis. Milton Friedman A Monetary History of the United States, 1867–1960
Schwartz’s scholarship belongs to a prolific tradition of empirical economic history that emphasizes how monetary and financial conditions shape real outcomes. Her work helped establish the monetarist view that money supply dynamics have powerful, persistent effects on prices, output, and employment over extended periods. In the policy arena, this perspective has fed into enduring debates about central banking arrangements, inflation targets, and the relative effectiveness of fiscal vs. monetary stabilization tools. monetarism monetary policy central banking
Her contributions extended beyond a single book. Schwartz pursued a long career as a researcher and scholar, building a reputation for careful archival work and data-driven analysis of money, credit, and financial institutions. Her research bridged economic history and policy analysis, influencing how economists, policymakers, and informed observers think about the mechanics of macroeconomic stabilization. economic history money finance
Early life and education
Schwartz is recognized as a key figure in American economic history, with a career marked by meticulous research and collaboration with one of the field’s most prominent theorists. She pursued higher education and established herself in the scholarly community through work that combined historical data with rigorous interpretation. Her trajectory reflects the mid-to-late twentieth-century expansion of empirical research into macroeconomic phenomena. While the details of every stage of her education are less widely cited in popular summaries, her enduring impact rests on the scholarly products she produced and the institutions with which she was affiliated. Milton Friedman A Monetary History of the United States, 1867–1960
Career and major works
The centerpiece of Schwartz’s influence is A Monetary History of the United States, 1867–1960, co-authored with Milton Friedman. The book contends that the course of the U.S. economy during long stretches—especially the Great Depression—was largely determined by monetary forces. It argues that the Federal Reserve’s policies, along with the broader monetary regime, helped produce a severe contraction in the money stock and credit, deepening and prolonging economic distress. This interpretation placed monetary policy at the forefront of explanations for macroeconomic cycles and gave weight to arguments for policy frameworks that emphasize price stability and predictable money growth. A Monetary History of the United States, 1867–1960 monetarism Federal Reserve Great Depression
Schwartz’s work also fed into a broader critique of what had become a conventional view in mid-20th-century economics: that active demand-management through fiscal and monetary stimulus was often necessary to stabilize output and employment. From the perspective associated with Schwartz and Friedman, the empirical record cautions policymakers against excessive reliance on discretionary stimulus and instead supports rules-based policy and central bank credibility as paths to sustainable growth. This line of thought helped lay the groundwork for later discussions about inflation targeting, monetary rulemaking, and the independence of monetary authorities. Keynesian economics inflation targeting central banking
Controversies and debates
Schwartz’s most famous work sparked substantial debate. Critics from rivals in macroeconomics have argued that the causes of the Great Depression were multifaceted, involving not only monetary factors but also bank fragility, financial regulation, international trade dynamics, and structural weaknesses in the economy. They contend that A Monetary History may overstate the primacy of the money supply or understate the role of fiscal and real factors in downturns. Proponents of these counterclaims point to histories in which policy responses and real‑factors help explain the timing and severity of downturns. Great Depression Keynesian economics
From a policy standpoint, supporters of Schwartz’s approach argue that the empirical record reinforces the case for disciplined, rules-based monetary policy and for maintaining credible commitments to price stability. Critics, however, have sometimes accused monetarist-influenced lines of argument of underappreciating the complexities of causation in macroeconomic fluctuations or of relying on historical episodes that may not generalize to other eras. Advocates of a more activist posture in fiscal policy have stressed that government spending can play a stabilizing role during demand shortfalls, a view that has persisted in various forms across economic thought. The dialogue between these positions remains central to debates about how best to stabilize economies over the business cycle. monetarism fiscal policy
Legacy and influence
Schwartz’s work helped shape the modern understanding of how money, credit, and central banking influence economic outcomes. The Friedman–Schwartz line of argument contributed to long-running policy discussions about central bank independence, the appropriate pace of money growth, and the risks of inflation or deflation arising from mismanaged monetary policy. Her scholarship remains a touchstone for economists, historians, and policymakers who view monetary discipline as essential to long-run prosperity. Friedman central banking money supply