Today Paul Krugman claimed: From Ben Bernanke’s encomium to Milton Friedman: It was in large part to improve the management of banking panics that the Federal Reserve was created in 1913. However, as Friedman and Schwartz discuss in some detail, in the early 1930s the Federal Reserve did not serve that function. The problem within … Continue reading Krugman Misses Boat on TBTF Banks