America's Great Depression by Murray N. Rothbard

It remains canonical today because the debate is still very alive. Since the book's first edition, it has been the definitive treatment of the causes of the depression. The damage to the intellectual world inflicted by Keynesian- and socialist-style treatments would be limited from that day forward.

Even so, its appearance in 1963 meant that free-market advocates had their first full-scale treatment of this crucial subject. This book applies Austrian business cycle theory to understanding the onset of the 1929 Great Depression. The book remains canonical today because the debate is still very alive. Had this book appeared in the 1940s, it might have spared the world much grief. Rothbard's America's Great Depression is a staple of modern economic literature and crucial for understanding a pivotal event in American and world history. The Great Depression was not a crisis for capitalism but merely an example of the downturn part of the business cycle, which in turn was generated by government intervention in the economy. The stock-market correction was merely one symptom of the investment boom that led inevitably to a bust. He proceeds to examine the Fed's policies of the 1920s, demonstrating that it was quite inflationary even if the effects did not show up in the price of goods and services. Rothbard opens with a theoretical treatment of business cycle theory, showing how an expansive monetary policy generates imbalances between investment and consumption. Rothbard's America's Great Depression is a staple of modern economic literature and crucial for understanding a pivotal event in American and world history. Applied Austrian economics doesn't get better than this.

America's Great Depression by Murray N. Rothbard