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Anna Jacobson Schwartz (pronounced ; November 11, 1915 – June 21, 2012) was an American
economist An economist is a professional and practitioner in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this field there are ...
who worked at the
National Bureau of Economic Research The National Bureau of Economic Research (NBER) is an American private nonprofit research organization "committed to undertaking and disseminating unbiased economic research among public policymakers, business professionals, and the academic c ...
in New York City and a writer for ''
The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
''.
Paul Krugman Paul Robin Krugman ( ; born February 28, 1953) is an American economist, who is Distinguished Professor of Economics at the Graduate Center of the City University of New York, and a columnist for ''The New York Times''. In 2008, Krugman was th ...
has said that Schwartz is "one of the world's greatest
monetary Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money are a ...
scholars." /sup> Schwartz collaborated with Nobel laureate Milton Friedman on ''A Monetary History of the United States, 1867–1960'', which was published in 1963. /sup> This book placed the blame for the
Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The Financial contagion, ...
at the door of the
Federal Reserve System The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...
.
Robert J. Shiller Robert James Shiller (born March 29, 1946) is an American economist, academic, and author. As of 2019, he serves as a Sterling Professor of Economics at Yale University and is a fellow at the Yale School of Management's International Center for ...
describes the book as the "most influential account" of the Great Depression. She was also president of the Western Economic Association International in 1988. /sup> Schwartz was inducted into the
National Women's Hall of Fame The National Women's Hall of Fame (NWHF) is an American institution incorporated in 1969 by a group of men and women in Seneca Falls, New York, although it did not induct its first enshrinees until 1973. As of 2021, it had 303 inductees. Indu ...
in 2013.


Early life and education

Schwartz was born Anna Jacobson on November 11, 1915, in New York City to Pauline (''
née A birth name is the name of a person given upon birth. The term may be applied to the surname, the given name, or the entire name. Where births are required to be officially registered, the entire name entered onto a birth certificate or birth re ...
'' Shainmark) and Hillel Jacobson. She graduated
Phi Beta Kappa The Phi Beta Kappa Society () is the oldest academic honor society in the United States, and the most prestigious, due in part to its long history and academic selectivity. Phi Beta Kappa aims to promote and advocate excellence in the liberal ar ...
from
Barnard College Barnard College of Columbia University is a private women's liberal arts college in the borough of Manhattan in New York City. It was founded in 1889 by a group of women led by young student activist Annie Nathan Meyer, who petitioned Columbi ...
at 18 and gained her master's degree in economics from
Columbia University Columbia University (also known as Columbia, and officially as Columbia University in the City of New York) is a private research university in New York City. Established in 1754 as King's College on the grounds of Trinity Church in Manhatt ...
in 1935, at 19. She started her career as a professional economist one year later. In 1936, she married Isaac Schwartz, a financial officer and fellow Columbia University graduate, with whom she raised four children. Her first published paper was in the '' Review of Economics and Statistics'' (1940), in which she, along with Arthur Gayer and Isaiah Finkelstein, wrote ''British Share Prices, 1811–1850''. She earned her Ph.D. from Columbia in 1964.


National Bureau of Economic Research

After briefly working for the
U.S. Department of Agriculture The United States Department of Agriculture (USDA) is the federal executive department responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food. It aims to meet the needs of com ...
(1936) and the Columbia University Social Science Research Council (1936–41); in 1941, she joined the staff of the
National Bureau of Economic Research The National Bureau of Economic Research (NBER) is an American private nonprofit research organization "committed to undertaking and disseminating unbiased economic research among public policymakers, business professionals, and the academic c ...
. She worked in the New York City office of that organization for the rest of her life. When she joined the National Bureau, it was engaged in the study of
business cycle Business cycles are intervals of expansion followed by recession in economic activity. These changes have implications for the welfare of the broad population as well as for private institutions. Typically business cycles are measured by examin ...
s. In 1981 her role as the staff director of the U.S. Gold Commission brought her public recognition. Even after a broken hip and stroke in 2009, Schwartz remained an astute and thorough researcher. She was named a distinguished fellow of the American Economic Association (1993) and a fellow of the
American Academy of Arts and Sciences The American Academy of Arts and Sciences (abbreviation: AAA&S) is one of the oldest learned societies in the United States. It was founded in 1780 during the American Revolution by John Adams, John Hancock, James Bowdoin, Andrew Oliver, ...
(2007). Though she held teaching positions for only a short part of her career, she developed younger scholars by her willingness to work with them and to share her approach (a scrupulous examination of the past) to understand history better and to draw lessons for the present.


''Growth and Fluctuations in the British Economy''

In collaboration with Arthur Gayer and
Walt Whitman Rostow Walt Whitman Rostow (October 7, 1916 – February 13, 2003) was an American economist, professor and political theorist who served as National Security Advisor to President of the United States Lyndon B. Johnson from 1966 to 1969. Rostow work ...
, she produced the monumental ''Growth and Fluctuations in the British Economy, 1790–1850: An Historical, Statistical, and Theoretical Study of Britain's Economic Development''. It appeared in two volumes in 1953, having been delayed by the
Second World War World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposi ...
for a decade after it was completed. It is still highly regarded among economic scholars of the period. It was reprinted in 1975. Gayer had died before the book's first appearance, but two other authors wrote a new introduction, which reviewed literature on the subject that had published since the original publication date. They admitted that there had developed what they called an "amicable divergence of view" about the interpretation of some of the facts that were set out in the book. In particular, Schwartz indicated that she had, in the light of recent theoretical and empirical research, revised her view of the importance of
monetary policy Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often ...
and her interpretation of
interest rate An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, th ...
movements.


Research with Friedman

Years before her first book was reprinted, another economist had joined what might be called the Schwartz team of co-authors. Prompted by Arthur F. Burns, then at
Columbia University Columbia University (also known as Columbia, and officially as Columbia University in the City of New York) is a private research university in New York City. Established in 1754 as King's College on the grounds of Trinity Church in Manhatt ...
and the National Bureau who would subsequently be Chairman of the U.S.
Federal Reserve System The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...
, she and Milton Friedman teamed up to examine the role of money in the
business cycle Business cycles are intervals of expansion followed by recession in economic activity. These changes have implications for the welfare of the broad population as well as for private institutions. Typically business cycles are measured by examin ...
. Their first publication was '' A Monetary History of the United States, 1867–1960'', which hypothesized that changes in
monetary policy Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often ...
have had large effects on the
economy An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with th ...
, and it laid a large portion of the blame for the
Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The Financial contagion, ...
at the door of the
Federal Reserve System The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...
. The book was published in 1963, along with the equally famous article, "Money and Business Cycles", which as with her first paper was published in the ''Review of Economics and Statistics''. They also wrote the books ''Monetary Statistics of the United States'' (1970) and ''Monetary Trends in the United States and the United Kingdom: Their Relation to Income, Prices, and Interest Rates, 1867–1975'' (1982). The Depression-related chapter of ''A Monetary History'' was titled " The Great Contraction" and was republished as a separate book in 1965. Some editions include an appendix in which the authors got an endorsement from an unlikely source at an event in their honor when
Ben Bernanke Ben Shalom Bernanke ( ; born December 13, 1953) is an American economist who served as the 14th chairman of the Federal Reserve from 2006 to 2014. After leaving the Fed, he was appointed a distinguished fellow at the Brookings Institution. Duri ...
made this statement:
"Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression, you're right. We did it. We're very sorry. But thanks to you, we won't do it again."


Financial regulation

She changed her opinion on
financial regulation Financial regulation is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the stability and integrity of the financial system. This may be handle ...
. Economists, bankers, and policymakers have long been concerned with the stability of the financial system. In a series of studies in the 1970s and 1980s, Schwartz emphasized that price level stability is essential for
financial system A financial system is a system that allows the exchange of funds between financial market participants such as lenders, investors, and borrowers. Financial systems operate at national and global levels. Financial institutions consist of complex, ...
stability. Drawing on evidence from over two centuries, she demonstrated that business failures do not have major consequences for the economy if their effects are prevented from spreading through the financial system. Individual institutions should also be allowed to fail, not supported with taxpayers' money. In 1981, she gained public recognition for her role as staff director of the U.S. Gold Commission.


Other areas of work

There have been other areas of her work including the international transmission of
inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reducti ...
and of
business cycles Business cycles are intervals of expansion followed by recession in economic activity. These changes have implications for the welfare of the broad population as well as for private institutions. Typically business cycles are measured by examin ...
, the role of government in
monetary policy Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often ...
, measuring the output of banks, and the behavior of
interest rates An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, t ...
, on
deflation In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). Inflation reduces the value of currency over time, but sudden deflati ...
, on monetary standards. In an interview with Barrons in 2008, Schwartz said interventions such as injecting liquidity into markets and reacting to the credit crisis with ad hoc programs were not the answer. She has also done work outside of the United States. Some years ago the Department of Banking and Finance at City University, London, England, started a research project on the monetary history of the United Kingdom. For many years, she was an adviser to that project. She commented on papers, suggested lines of approach, came and spoke to students and at academic conferences where the work was discussed.


Later work

From 2002 to 2003, she served as president of the International Atlantic Economic Society. She was elected a Fellow of the
American Academy of Arts and Sciences The American Academy of Arts and Sciences (abbreviation: AAA&S) is one of the oldest learned societies in the United States. It was founded in 1780 during the American Revolution by John Adams, John Hancock, James Bowdoin, Andrew Oliver, ...
in 2007. After 2007, she concentrated her efforts on researching U.S. official intervention in the foreign exchange market using Federal Reserve data from 1962. She continued commenting on economic affairs until the financial crisis of the first decade of the 21st century, and criticized the government's response to it, such as
Ben Bernanke Ben Shalom Bernanke ( ; born December 13, 1953) is an American economist who served as the 14th chairman of the Federal Reserve from 2006 to 2014. After leaving the Fed, he was appointed a distinguished fellow at the Brookings Institution. Duri ...
's support for bailouts and persistently-low interest rates. She also addressed a critique of Friedman by Krugman. In addition, she wrote 9 books in her career, and published over 100 academic articles or comments.


Personal life

She died on June 21, 2012, in her home in
Manhattan Manhattan (), known regionally as the City, is the most densely populated and geographically smallest of the five boroughs of New York City. The borough is also coextensive with New York County, one of the original counties of the U.S. state ...
, New York, aged 96. Her husband Isaac predeceased her in 1999; they had been married for over 60 years. She was survived by four children (Jonathan, Joel, Naomi Pasachoff and Paula Berggren) as well as seven grandchildren and six great-grandchildren. Her son-in-law was astronomer Jay Pasachoff.Claire McDonald
Anna Schwartz
''The Key Reporter'', September 5, 2013.


Honorary degrees

*
University of Florida The University of Florida (Florida or UF) is a public land-grant research university in Gainesville, Florida. It is a senior member of the State University System of Florida, traces its origins to 1853, and has operated continuously on its ...
(1987) *
Stonehill College Stonehill College is a private Roman Catholic liberal arts college in Easton, Massachusetts. It was founded in 1948 by the Congregation of Holy Cross and is located on the original estate of Frederick Lothrop Ames Jr., with 29 buildings that c ...
, Massachusetts (1989) * Iona College (1992) *
Rutgers University Rutgers University (; RU), officially Rutgers, The State University of New Jersey, is a Public university, public land-grant research university consisting of four campuses in New Jersey. Chartered in 1766, Rutgers was originally called Queen's ...
(1998) *
Emory University Emory University is a private research university in Atlanta, Georgia. Founded in 1836 as "Emory College" by the Methodist Episcopal Church and named in honor of Methodist bishop John Emory, Emory is the second-oldest private institution of h ...
(2000);
City University of New York Graduate Center The Graduate School and University Center of the City University of New York (CUNY Graduate Center) is a public research institution and post-graduate university in New York City. Serving as the principal doctorate-granting institution of the C ...
(2000) *
Williams College Williams College is a private liberal arts college in Williamstown, Massachusetts. It was established as a men's college in 1793 with funds from the estate of Ephraim Williams, a colonist from the Province of Massachusetts Bay who was kill ...
(2002) *
Loyola University Chicago Loyola University Chicago (Loyola or LUC) is a private Jesuit research university in Chicago, Illinois. Founded in 1870 by the Society of Jesus, Loyola is one of the largest Catholic universities in the United States. Its namesake is Saint Ign ...
, 2003 * City University Business School, London (2006)


Books

* ''Monetary History of the United States, 1867–1960'' (with Milton Friedman), 1963 * ''Monetary Statistics of the United States: Estimates, Sources, Methods'' (with Milton Friedman), 1970 * ''Growth and Fluctuations in the British Economy, 1790–1850: An Historical, Statistical, and Theoretical Study of Britain's Economic Development'' (with Arthur Gayer and Walt Whitman Rostow), 1953 * ''Money in Historical Perspective'' (with an introduction by Michael D. Bordo and Milton Friedman), 1987


References


Further reading

*


External links


Monetarism Defiant, ''City Journal,'' Spring 2009





Essay on ''A Monetary History of the United States''

The Great Depression and the Friedman-Schwartz Hypothesis


by Anna J. Schwartz. ''
Concise Encyclopedia of Economics Liberty Fund, Inc. is an American private educational foundation headquartered in Carmel, founded by Pierre F. Goodrich. Through publishing, conferences, and educational resources, the operating mandate of the Liberty Fund was set forth in an u ...
'' on
Econlib Liberty Fund, Inc. is an American private educational foundation headquartered in Carmel, founded by Pierre F. Goodrich. Through publishing, conferences, and educational resources, the operating mandate of the Liberty Fund was set forth in an u ...
2008 * * * {{DEFAULTSORT:Schwartz, Anna 1915 births 2012 deaths 20th-century American Jews Economists from New York (state) American women economists Monetarists Columbia University alumni Barnard College alumni American economics writers Writers from Manhattan Fellows of the American Academy of Arts and Sciences Distinguished Fellows of the American Economic Association National Bureau of Economic Research Brooklyn College faculty 21st-century American Jews 20th-century American women 21st-century American women New York University faculty