Classical Economists (monetary policy)
If Classical economists believe markets always tend to equilibrium, what did they think causes recessions and depressions?
After watching Milton Friedman's "Anatomy of a Crisis," explain what Friedman, a neo-classical economist, thinks caused the Great Depression to be so severe. The video which was recorded in 1979 can be seen on YouTube here: https://www.youtube.com/watch?v=SWVoPrntBso.
State briefly how this agrees with or disagrees (maybe both) with Keynes' analysis of the cause and severity of the Great Depression.
What policy would Friedman's classical analysis lead him to propose?