Economics Questions

Re: Murray Rothbard Money Supply Contraction 1929-1933

BlackNumero — Thu, 05 Mar 2009 20:50:59 GMT

Thanks guys for the info. Now I'm just looking for where he gets his statistics to say Total Monetary Contraction was 16 percent and then the money supply was 27 percent. He goes through his monetary contraction throughout the whole book, and ends on the page I listed and ends with that (I think). On page 92, the table with all of the listings he has for his "Total Money Supply" (What makes Total monetary contraction and money supply different from this I don't know).

Re: Murray Rothbard Money Supply Contraction 1929-1933

Thedesolateone — Thu, 05 Mar 2009 20:13:33 GMT

Scott Jefferies:

BlackNumero:

In America's Great Depression, Rothbard says p325 Total monetary contraction from June 1929 to the end of 1933 was 16 percent, or 3.6 per annum.

In A history of money and banking, he says p103 (at the very bottom) In 1929, the money supply fell by 27 percent....

In a History of Money and Banking he uses that comparison to draw similiar conculsions about the liquidation process of 1839-1843. Am I missing something?

you can see the difference in the wording. in AGD he is measuring total monetary contraction and and a history of money and banking he talks about the money supply. rothbard should have footnotes for what figures hes drawing them from, but the most obvious answer i can think of is that hes using two different methods of measuring the money supply(there are many methods of doing so). whether hes using M1, M2, or some other description of bank reserves, i cant tell you.

Rothbard explains his money methodology in one of the books I've read:

He uses the "true money supply", which is a combination of M0, M1 and some of M2 (i.e. those assets with full liquidity)

Re: Murray Rothbard Money Supply Contraction 1929-1933

Scott Jefferies — Thu, 05 Mar 2009 18:54:42 GMT

BlackNumero:

In America's Great Depression, Rothbard says p325 Total monetary contraction from June 1929 to the end of 1933 was 16 percent, or 3.6 per annum.

In A history of money and banking, he says p103 (at the very bottom) In 1929, the money supply fell by 27 percent....

In a History of Money and Banking he uses that comparison to draw similiar conculsions about the liquidation process of 1839-1843. Am I missing something?

you can see the difference in the wording. in AGD he is measuring total monetary contraction and and a history of money and banking he talks about the money supply. rothbard should have footnotes for what figures hes drawing them from, but the most obvious answer i can think of is that hes using two different methods of measuring the money supply(there are many methods of doing so). whether hes using M1, M2, or some other description of bank reserves, i cant tell you.

Re: Murray Rothbard Money Supply Contraction 1929-1933

WisR — Thu, 05 Mar 2009 12:49:05 GMT

It's possible the money supply fell and then expanded in 1930-1933 - Rothbard does make the point that the portions of the money supply that the Fed controls were rising in these years. Sorry, not a comprehensive answer.

Murray Rothbard Money Supply Contraction 1929-1933

BlackNumero — Thu, 05 Mar 2009 02:58:25 GMT

Hey, I was looking over America's Great Depression and A history of money and banking and I found two discrepancies that I'm confused over (I just probably misinterpreted them).

In America's Great Depression, Rothbard says p325 Total monetary contraction from June 1929 to the end of 1933 was 16 percent, or 3.6 per annum.

In A history of money and banking, he says p103 (at the very bottom) In 1929, the money supply fell by 27 percent....

In a History of Money and Banking he uses that comparison to draw similiar conculsions about the liquidation process of 1839-1843. Am I missing something?

Secondly, and I hope I will answer my question, how do fiscal years work for the government? For example, for the fiscal year 1929, does the year start July 1928 and ends in June 1929? (I think those were the months before they changed them).

Thanks for the help on (hopefully) both questions.