"Friedman's claim that monetary policy could have prevented the Great Depression was an attempt to refute the analysis of John Maynard Keynes, who argued that m

"Friedman's claim that monetary policy could have prevented the Great Depression was an attempt to refute the analysis of John Maynard Keynes, who argued that monetary policy is ineffective under depression conditions and that fiscal policy - large-scale deficit spending by the government - is needed to fight mass unemployment. The failure of monetary policy in the current crisis shows that Keynes had it right the first time. And Keynesian thinking lies behind Obama's plans to rescue the economy." -- From the article Just because Keynes wasn't proven wrong doesn't mean he is right. I don't think he has put enough thought into this. The fact of the matter is our financial system pretended there was whole lot more wealth than there really was and not mention the fact they continued to trade based on that. Niether trickling down money top down nor spending can solve this core issue in my opinion.