In A Monetary History of the United States,1867-1960,Milton Friedman and Anna Schwartz argued that:

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Friedman and Schwartz argued that monetary policy should play a key role in stabilizing the economy. They believed that the Federal Reserve had the power to prevent the occurrence of severe economic contractions by stabilizing the money supply and preventing large fluctuations in the price level. They also argued that the Great Depression was largely caused by the failure of the Federal Reserve to stabilize the banking system and prevent a contraction in the money supply, which led to widespread bank failures, deflation, and a severe economic downturn.

In a Monetary History of the United States,1867-1960,Milton Friedman and Anna