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→Milton Friedman: TARP
In historical terms, the "lessons" of the Great Depression have been applied to preventive measures, and in the [[Financial Crisis of 2008]], helped determine what remedies to apply.
In historical terms, the "lessons" of the Great Depression have been applied to preventive measures, and in the [[Financial Crisis of 2008]], helped determine what remedies to apply.
===Milton Friedman===
===Milton Friedman===
Friedman argues that the depression began as a normal cyclical downturn, but was made much worse when the money supply fell by a third, caused primarily by banking failures in the U.S. The Federal Reserve did not cause the depression, in Friedman's view, but failed to stop those [[bank failure]]s when it could and should have done so in 1931-33. In Friedman's view, the Federal Reserve failed to do precisely what it was created to do, prevent a contraction in the money supply (monetary deflation) and prevent so many bank failures. Economist [[Ben Bernanke]] adopted the Friedman view, and when the [[Financial Crisis of 2008]] hit, Bernanke, as Chairman of the Federal Reserve, made it a central goal to save the major banks using a trillion dollars in cash and credit from the Fed and from the $700 billion bailout of October 2008 that Congress approved after President [[George W. Bush]] made an urgent appeal.
Friedman argues that the depression began as a normal cyclical downturn, but was made much worse when the money supply fell by a third, caused primarily by banking failures in the U.S. The Federal Reserve did not cause the depression, in Friedman's view, but failed to stop those [[bank failure]]s when it could and should have done so in 1931-33. In Friedman's view, the Federal Reserve failed to do precisely what it was created to do, prevent a contraction in the money supply (monetary deflation) and prevent so many bank failures. Economist [[Ben Bernanke]] adopted the Friedman view, and when the [[Financial Crisis of 2008]] hit, Bernanke, as Chairman of the Federal Reserve, made it a central goal to save the major banks using a trillion dollars in cash and credit from the Fed and from the $700 billion TARP program of October 2008 that Congress approved after President [[George W. Bush]] made an urgent appeal.
===Austrian School===
===Austrian School===