The Strategy and Consistency of Federal Reserve Monetary Policy, 1924 1933

Wheelock David C. Capie Forrest Bordo Michael D.

ISBN 10: 052153139X / ISBN 13: 9780521531399

Published by Cambridge University Press, 2004

About this Item

PRINT ON DEMAND pp. 144.

Seller Inventory # 18194010

Bibliographic Details

• Title: The Strategy and Consistency of Federal Reserve Monetary Policy, 1924 1933
• Publisher: Cambridge University Press
• Publication Date: 2004
• Language: English
• ISBN 10: 052153139X
• ISBN 13: 9780521531399
• Binding: Soft cover
• Condition: New

About this title

Synopsis

Today, most scholars agree that mismanaged monetary policy contributed to the length and severity of the Great Depression. There is little agreement, however, about the causes of the Federal Reserve's mistakes. Some argue that leadership and other organizational changes prior to the depression caused a distinct change in policy strategy that lessened the Fed's responsiveness to economic conditions, while others contend that there was no change in the Fed's behavior, and that errors during the depression are traceable to previous policies. This book examines the policy strategy developed by the Federal Reserve during the 1920s and considers whether its continued use could explain the Fed's failure to respond vigorously to the depression. It also studies the effects on policy of the institutional changes occurring prior to the depression. While these changes enhanced the authority of officials who opposed open-market purchases and also caused some upward bias in discount rates, Wheelock concludes that monetary policy during the depression was in fact largely a continuation of the previous policy. The apparent contrast in Fed responsiveness to economic conditions between the 1920s and early 1930s resulted from the consistent use of a procyclical policy strategy that caused the Fed to respond more vigorously to minor recessions than to severe depressions.

Book Description

A study of the impact of monetary policy in the United States on the causes and length of the Great Depression.