No Free Lunch: Economics for a Fallen World: Third Edition, Revised

Chapter Seventeen: A Short History of Macroeconomics 442 ENDNOTES: 1. A number of resources were used to produce this historical summary. Joseph Schumpeter’s History of Economic Analysis, Mark Skousen’s The Making of Modern Economics, Thomas Sowell’s Classical Economics Reconsidered, W.H. Hutt’s A Rehabilitation of Say’s Law, Richard H. Fink, ed. Supply-Side Economics: A Critical Appraisal, Milton Friedman and Anna Schwartz’s A Monetary History of the United States, and most importantly, Steven Kates’ Say’s Law and the Keynesian Revolution were instrumental in shaping my thoughts for this chapter. 2. See Rodney Stark’s The Victory of Reason (2006) for a historical review of capitalism and why the label “dark ages” is a misnomer. 3. Quoted in Steven Kates, Says Law and the Keynesian Revolution, p. 45. 4. J.S. Mill, Essays on Some Unsettled Questions of Political Economy, p. 70. 5. J.S. Mill, Principles of Political Economy , p. 561. 6. Carmen Rinehart and Ken Rogoff, 2009 book, This Time is Different: Eight Centuries of Financial Folly” 7. Milton Friedman and Anna Schwartz, A Monetary History of the United States, pp. 279-284. 8. Understanding the Great Depression is often called the economist’s holy grail, and there are likely many causal factors in both the initiation and understanding its severity. In the U.S., restrictive trade policies (Smoot-Hawley Tariffs), increasing income taxation, and government regulation all likely had effects. But to understand a global phenomenon of such magnitude, only monetary disorder seems to fit— since money is on one-half of every economic exchange. Even with agreement on a monetary cause there remains disagreement. Eichengreen blames the gold standard, Friedman and Schwartz blame the Fed (post the stock market crash), Rothbard blames the Fed (prior to the crash), while Irwin adds blame to France’s monetary authority. 9. J.M. Keynes, General Theory, p. 6. 10.[Portrait of Jean Baptiste Say]. (2005). Retrieved October 3, 2017, from https://