Banking and Monetary Policy in American Economic History from the Formation of the Federal Reserve

2018 ◽  
pp. 276-304
Author(s):  
Gary Richardson
Keyword(s):  
United States ◽  
Monetary Policy ◽  
Federal Reserve ◽  
Economic History ◽  
Commercial Banks ◽  
The United States ◽  
Washington Dc ◽  
United States Congress ◽  
Federal Reserve System ◽  
Reserve System

The United States Congress created the Federal Reserve System in 1913. The System consists of the Federal Reserve Board in Washington, DC; twelve Federal Reserve Banks; and thousands of member commercial banks. This entry describes the evolution of the system and of monetary policy from its foundation through 2013.

Understanding Interest Rates and the Economy

2019 ◽  
pp. 81-110 ◽  
Author(s):  
Alan N. Rechtschaffen
Keyword(s):  
United States ◽  
Monetary Policy ◽  
Interest Rates ◽  
Federal Reserve ◽  
Balance Sheet ◽  
The United States ◽  
Federal Reserve System ◽  
Federal Open Market Committee ◽  
Reserve Banking ◽  
Reserve System

This chapter begins with a discussion of the Federal Reserve and the Federal Reserve Banking System. The Federal Reserve System was created by Congress under the Federal Reserve Act “to provide for the establishment of federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States and for other purposes.” The Federal Reserve System comprises a central Board of Governors appointed by the president of the United States and confirmed by the Senate, and 12 regional Reserve banks. Monetary policy is set by the Federal Open Market Committee (FOMC). The remainder of the chapter covers monetary policy, quantitative easing, balance sheet normalization and the FOMC minutes.

Monetary Policy, Loan Liquidation, and Industrial Conflict: The Federal Reserve and the Open Market Operations of 1932

1984 ◽  
Vol 44 (4) ◽  
pp. 957-983 ◽  
Author(s):  
Gerald Epstein ◽  
Thomas Ferguson
Keyword(s):  
United States ◽  
Monetary Policy ◽  
Federal Reserve ◽  
Gold Standard ◽  
The United States ◽  
Open Market ◽  
Federal Reserve System ◽  
Industrial Conflict ◽  
Reserve System ◽  
Bank Profits

Early in 1932 the Federal Reserve System made a serious attempt to reverse the “Great Contraction” throught expansionary open market operations, but abandoned it a few months later. In this paper we offer an interpretation of the episode that throws new light on the Fed's behavior during the Depression. Key are the attitude of private bankers, Britain's abandonment of the gold standard, and the brief open market campaign. To protect bank profits the Fed abandoned the program which set the stage for the complete financial collapse of the United States in early 1933.

scholarly journals REGULATION OF SWAP AGREEMENTS WITH OTHER CENTRAL BANKS BY THE FEDERAL RESERVE SYSTEM OF THE UNITED STATES

2016 ◽  
pp. 0-0
Author(s):  
Мехти Галиб Мехтиев ◽  
Mekhti Galib Mekhtiev
Keyword(s):  
United States ◽  
Federal Reserve ◽  
Global Financial Crisis ◽  
Financial System ◽  
The United States ◽  
Federal Reserve System ◽  
Market Rate ◽  
The Global Financial Crisis ◽  
Global Financial System ◽  
Reserve System

The present article evaluates history of swap agreements’ application and their functioning system in the framework of intercentral bank relations (in particular by the Federal Reserve System of the United States (the Fed)). Swap includes two transactions: the first is a currency exchange on the spot market rate and the second is a future transaction on the rate defined in advance. This mechanism proved its efficiency within its application through history. In 1970s, during a radical transformation period of an entire global currency architecture caused by collapse of Bretton Woods’s system the Fed applied swap agreements to promote stability on financial markets and particularly on currency markets. Later during the Global Financial Crisis of 2008 these agreements again have become rescue measures for the global financial system, as the financial shock caused liquidity deficit for financial institutions and thus cut dramatically credit supply. And finally nowadays the global financial system is badly in need of swap agreements. The swaps’ force of attraction is that firstly it differs from crediting as the latter is one way currency extension, while swap agreement is the exchange of equivalent values. And secondly it fixes the rate of the future currency transaction what lightens both monetary regulation within national jurisdiction and regulation on the level of public international law.

The Impeccable System

Money ◽  
2017 ◽  
Author(s):  
John Kenneth Galbraith ◽  
James K. Galbraith
Keyword(s):  
United States ◽  
Federal Reserve ◽  
The United States ◽  
Central Banks ◽  
Bank Failures ◽  
Federal Reserve System ◽  
Woodrow Wilson ◽  
System P ◽  
The Impact ◽  
Reserve System

This chapter examines the impact of the Federal Reserve System on money and banking in the United States. The Federal Reserve System was created in 1913 by virtue of the Federal Reserve Act passed by Congress and signed by President Woodrow Wilson. The Federal Reserve Act (1913) provided not for one but for as many as twelve central banks. It was conceived as an answer to the great panics, but in this respect the System was notably defective. Nor was the System better as an antidote for an alarming epidemic of bank failures. Furthermore, the most severe inflation ever in peacetime occurred under its watch. The chapter considers the successes and failures of the Federal Reserve System and looks at another body established to study the management of money in the United States: the National Monetary Commission.

The Methodological Roots of J. Laurence Laughlin's Anti-quantity Theory of Money and Prices

1995 ◽  
Vol 17 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Neil T. Skaggs
Keyword(s):  
United States ◽  
Money Supply ◽  
Federal Reserve ◽  
The United States ◽  
Federal Reserve System ◽  
Quantity Theory ◽  
Theoretical Support ◽  
The Creation ◽  
Reserve System

From the 1880s until after the creation of the Federal Reserve System in 1913 the United States was a hotbed of monetary controversy. The secular price deflation that began in 1865 prompted a host of efforts to increase the money supply, in the belief that more money would check the decline of prices. The agitation for free coinage of silver that arose in the 1870s and carried into the 1880s and 1890s generated a maelstrom of arguments and counterarguments. Such theoretical support as the “cheap money advocates” provided was in the form of a crude application of the quantity theory of money. Not surprisingly, using the quantity theory in such a manner brought the theory itself under fire.

The Specie Standard and Central Banking in the United States Before 1860

1961 ◽  
Vol 21 (3) ◽  
pp. 318-341 ◽  
Author(s):  
Richard H. Timberlake
Keyword(s):  
United States ◽  
Monetary Policy ◽  
Federal Reserve ◽  
The United States ◽  
Central Banking ◽  
Quarter Century ◽  
The Past ◽  
Dark Ages ◽  
Banking Institutions ◽  
Reserve System

Central banking institutions during the past quarter-century have been almost free of the constraints that inhibited their actions during the nineteenth century. The special conditions under which earlier central banking institutions were formed and operated frequently have been lost to view; and while contemporary observers have come to regard the first two Banks of the United States sympathetically, the functional evolution of these institutions within the framework of specie standards has been largely neglected. The period between the end of the Second Bank and the organization of the Federal Reserve System is subsequently treated as the Dark Ages of monetary policy, better forgotten than deplored.

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