Rothbard Hayek Federal Reserve Bank of England money supply
According to Rothbard, the government support for failed enterprises and efforts to keep wages above their market values actually prolonged the Depression. Unlike Rothbard, after 1970 Hayek believed that the Federal Reserve had further contributed to the problems of the Depression by permitting the money supply to shrink during the earliest years of the Depression. However, during the Depression (in 1932 and in 1934) Hayek had criticized both the Federal Reserve and the Bank of England for not taking a more contractionary stance.
