 Friedman and Buchanan are concerned about Keynesian claims that recessions are due to declines in aggregate demand and can only be addressed with heavy helpings of debt-financed fiscal stimulus (even though Keynes himself was not always a fan of debt-financed countercyclical policy). Friedman (1959) developed the doctrine of monetarism, which holds that inflation is always and everywhere a monetary phenomenon. Inflation and the business cycle can be controlled by monetary policy and so do not require a fiscal response. With his co-author, Anna Schwartz, Friedman (Friedman &amp; Schwartz 1963) argues that the Great Depression was due not to a fall in aggregate demand but was instead caused by the Federal Reserve System, ironically created to manage recessions, because the Fed allowed the monetary base to collapse. Had the Fed ensured the growth of the monetary supply, the Great Depression could have been avoided. This is central to the case for the market because the Great Depression was widely blamed on capitalism. If the Depression was a government failure, the result of monetary mismanagement, then the Depression provides no basis for rejecting capitalism—and may even provide reason to embrace it.