1Fisher’sLifeIrving Fisher was, along with Ken Arrow, thefnest American economist in history.As a young professor at Yale he made a fortune when the company he founded soldits stock publicly. He became fascinated by the stock market and worked out acomprehensive theory. He was also a frequent advisor in Washington, and the mainadvice he had to give was that the government should expand the money supply.Fisher was confdent that the government would listen to his advice, and confdentthat his policy prescription would keep the economy on afrm footing, and later,reverse the stock market crash of 1929. Unfortunately, Washington did not heedhis advice. The money supply shrank dramatically, the economy was plunged into agreat 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.