debt deflation expectations hypothesis Milton Friedman Anna Schwartz Keynesian deflation
Economists and economic historians are almost evenly split as to whether the traditional monetary explanation that monetary forces were the primary cause of the Great Depression is right, or the traditional Keynesian explanation that a fall in autonomous spending, particularly investment, is the primary explanation for the onset of the Great Depression. Today there is also significant academic support for the debt deflation theory and the expectations hypothesis that — building on the monetary explanation of Milton Friedman and Anna Schwartz — add non-monetary explanations.
