04a_Fisher_life - 1 Fishers Life Irving Fisher was, along...

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1F i s h e r s L i f e Irving Fisher was, along with Ken Arrow, the f nest American economist in history. As a young professor at Yale he made a fortune when the company he founded sold its stock publicly. He became fascinated by the stock market and worked out a comprehensive theory. He was also a frequent advisor in Washington, and the main advice he had to give was that the government should expand the money supply. Fisher was con f dent that the government would listen to his advice, and con f dent that his policy prescription would keep the economy on a f rm footing, and later, reverse the stock market crash of 1929. Unfortunately, Washington did not heed his advice. The money supply shrank dramatically, the economy was plunged into a great depression (perhaps for other reasons as well), and the stock market plummeted. Irving Fisher, who had said in 1929 that the stock market was at a “permanently high
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This note was uploaded on 12/08/2009 for the course ECON 251 at Yale.

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