How Did Anna Schwartz’s Research Contribute to the Formation and Development of 20th Century Monetarism?

This paper analyses the pivotal contributions of Anna Schwartz in shaping the Monetarist school of thought in the 20th century. Schwartz’s research has yet to receive thorough recognition, as she was often overshadowed by her academic partner, Milton Friedman. Schwartz’s key literary contributions to the field included the Money and Business Cycles project, A Monetary History of the United States and the Gold Commission Report. Her critical analysis of transmission effects within the money supply allowed her to develop the new Quantity Theory of Money, alongside Friedman. Further, her scrutiny of the role of the Federal Reserve during the Great Depression challenged prevailing Keynesian thought, allowing for a new perspective on monetary mechanisms within the US economy. Schwartz’s timelessness is reflected in her inquiries into the 2008 Financial Crisis, demonstrating how her research on the Great Depression was still applicable, almost a century later. As an advocator of monetary stability, Schwartz wished to produce research which would shift perspective on economic policy. Indeed, this paper concludes that Monetarism would not be so widely recognised without Schwartz’s contributions, which still teach valuable lessons to policymakers and academics in modern-day economies.