Reply To: Literature on WWII economics


Ok this is very helpful.

My impression so far has been that the evolution of this debate went from keynesian to a mix of monetarism and keynesianism. I believe Friedman and Schwarz’s book helped create this consensus correct?

Also I found a journal article by J.R.Vernon from 1994 entitled “World War II Fiscal Policies and the End of the Great Depression” where he tries to restablish that fiscal policy matters as well and that consensus view still holds. This was a direct answer to the work of Romer, Delong+Larry Summers which emphazised monetary policy as being important in ending the Great Depression and that it ended before 1942 and did not attribute that to the war. Those are big names so I’m wondering if they have succesfully changed/challenged the consensus view?

I also just found Krugman basically agreeing with the Romer/Delong/Summer line of thought on the Great Depression. Back in 1998 he was saying monetary policy was the primary driver and not fiscal policy.
Robert Murphy through Scott Sumner found this.

I mention this only to further argue that perhaps the consensus was changing among keynesians in the 90’s after Romer/Delong/Summers came out with their work.