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Great Contraction

The Great Contraction is Milton Friedman's term for the Great Depression.

Friedman labelled it thus because he believed that the depression lasted so long due to the Federal Reserve's mismanagement. He argued that the reserve contracted the monetary supply dramatically, prolonging the Depression, which Friedman claims could have been over by 1931.

Last updated: 10-12-2005 11:48:41
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