By Allan H. Meltzer
Author note: ahead by means of Alan Greenspan
Allan H. Meltzer's enormous historical past of the Federal Reserve procedure tells the tale of 1 of America's such a lot influential yet least understood public associations. this primary quantity covers the interval from the Federal Reserve's founding in 1913 during the Treasury-Federal Reserve Accord of 1951, which marked the start of a bigger and tremendously replaced institution.
To comprehend why the Federal Reserve acted because it did at key issues in its historical past, Meltzer attracts on assembly mins, correspondence, and different inner files (many made public basically throughout the Seventies) to track the reasoning at the back of its coverage judgements. He explains, for example, why the Federal Reserve remained passive all through many of the fiscal decline that resulted in the nice melancholy, and the way the Board's activities helped to provide the deep recession of 1937 and 1938. He additionally highlights the influence at the establishment of people resembling Benjamin powerful, governor of the Federal Reserve financial institution of recent York within the Nineteen Twenties, who performed a key position within the adoption of a extra lively financial coverage via the Federal Reserve. Meltzer additionally examines the effect the Federal Reserve has had on overseas affairs, from makes an attempt to construct a brand new foreign economy within the Twenties to the Bretton Woods contract of 1944 that tested the overseas financial Fund and the realm financial institution, and the failure of the London financial convention of 1933.
Written via one of many world's top economists, this magisterial biography of the Federal Reserve and the folks who assisted in shaping it's going to curiosity economists, imperative bankers, historians, political scientists, policymakers, and an individual looking a deep figuring out of the establishment that controls America's handbag strings.
"It was once 'an remarkable orgy of extravagance, a mania for hypothesis, overextended enterprise in approximately all strains and in each component of the country.' An Alan Greenspan rumination concerning the irrational exuberance of the past due Nineties? try out the 1920 annual record of the board of governors of the Federal Reserve. . . . to appreciate why the Fed acted because it did—at those serious moments and lots of others—would require years of research, poring over letters, the mins of conferences and inner Fed records. this sort of job might certainly deter so much students of financial heritage yet no longer, thank goodness, Allan Meltzer."—Wall road Journal
"A seminal paintings that anybody drawn to the internal workings of the U. S. imperative financial institution should still learn. a piece that students will mine for years to come."—John M. Berry, Washington Post
"An quite transparent tale approximately why, because the rules that truly educated coverage advanced, issues occasionally went good and occasionally went badly. . . . possible simply desire that we don't have to attend too lengthy for the second one installment."—David Laidler, magazine of monetary Literature
"A thorough narrative background of a excessive order. Meltzer's research is persuasive and acute. His paintings will stand for a iteration because the benchmark heritage of the world's strongest fiscal establishment. it's a magnificent, even awe-inspiring achievement."—Sir Howard Davies, instances better schooling Supplement
Alice Hanson Jones Biennial Prize (2004)
Read Online or Download A History of the Federal Reserve: 1913-1951 (A History of the Federal Reserve, Volume 1) PDF
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Additional resources for A History of the Federal Reserve: 1913-1951 (A History of the Federal Reserve, Volume 1)
The main issues in dispute during the period are familiar to contemporary economists. Can the monetary system be controlled? If so, which variables should be controlled, and how should this be done? What are the consequences of alternative systems of control? Did the central bank have an opportunity to exercise discretion, or is the real stock of money constant, so that central bank policy ultimately determined only the division of the real stock of money between gold (foreign exchange) or specie and paper?
12 In contrast to Ricardo, Thornton argued that replacing a convertible currency with inconvertible paper causes the market price of gold to rise above the mint price even if the nominal amount of paper money remains unchanged. His reasoning is that if money holders anticipate a decline in the purchasing power of money, they attempt to shift out of money. 13 Thornton’s fifth contribution to the theory of central banking is a part of his theory of money and in this respect also stands in marked contrast to much of the literature on monetary theory and policy that followed.
Third is Irving Fisher’s distinction between real and nominal interest rates. Thornton’s work was not well known. Bagehot’s work was well known at central banks, and Fisher was active until the middle of the twentieth century. Yet none of the three had a major influence on the conduct of policy. If they had, monetary history would have been much different. The main issues in dispute during the period are familiar to contemporary economists. Can the monetary system be controlled? If so, which variables should be controlled, and how should this be done?
A History of the Federal Reserve: 1913-1951 (A History of the Federal Reserve, Volume 1) by Allan H. Meltzer