Outside of the recent past, excess reserves have only concerned policymakers in one other period: The Great Depression of the 1930s. This historical episode thus provides the only guidance about the Fed's current predicament of how to unwind from the extensive Quantitative Easing program. Excess reserves in the 1930s were never actively unwound through a reduction in the monetary base. Nominal economic growth swelled required reserves while an exogenous reduction in monetary gold inflows due to war embargoes in Europe allowed banks to naturally reduce their excess reserves. Excess reserves fell rapidly in 1941 and would have unwound fully even without the entry of the United States into World War II. As such, policy tightening was at no poi...
The Lehman failure precipitated the Great Recession and forced economic policy into unchartered terr...
This paper argues that mismanagement of the money supply substantially contributed to the economic d...
Conventional wisdom contends that fiscal policy was of secondary importance for the economic recover...
Despite compelling arguments by Lester Telser, the myth continues that the recession of 1937-38 was ...
Economists and economic historians generally agree that the Federal Reserve made several major mista...
International audienceThe October 1929 crash led to a complete freeze of New York open markets. Stud...
This paper explores three areas in which the experience of the Great Depression might be relevant to...
Depressions ; Federal Reserve System - History ; Seasonal variations (Economics) ; Financial crises
A negative real interest rate has guaranteed macroeconomic equilibrium during every national emergen...
When an economy drops suddenly into recession, the paramount objective of any policy initiative is t...
Federal Reserve policy in the early postwar years has frequently been described as an "engine of inf...
The United States went through a period of severe economic decline during the 1930s, a period common...
235 p.Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 1987.This dissertation examines th...
Would financial markets and the economy have been better off if the Fed pursued a policy of quantita...
It is widely believed that the Federal Reserve played a central role in bringing about the biggest c...
The Lehman failure precipitated the Great Recession and forced economic policy into unchartered terr...
This paper argues that mismanagement of the money supply substantially contributed to the economic d...
Conventional wisdom contends that fiscal policy was of secondary importance for the economic recover...
Despite compelling arguments by Lester Telser, the myth continues that the recession of 1937-38 was ...
Economists and economic historians generally agree that the Federal Reserve made several major mista...
International audienceThe October 1929 crash led to a complete freeze of New York open markets. Stud...
This paper explores three areas in which the experience of the Great Depression might be relevant to...
Depressions ; Federal Reserve System - History ; Seasonal variations (Economics) ; Financial crises
A negative real interest rate has guaranteed macroeconomic equilibrium during every national emergen...
When an economy drops suddenly into recession, the paramount objective of any policy initiative is t...
Federal Reserve policy in the early postwar years has frequently been described as an "engine of inf...
The United States went through a period of severe economic decline during the 1930s, a period common...
235 p.Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 1987.This dissertation examines th...
Would financial markets and the economy have been better off if the Fed pursued a policy of quantita...
It is widely believed that the Federal Reserve played a central role in bringing about the biggest c...
The Lehman failure precipitated the Great Recession and forced economic policy into unchartered terr...
This paper argues that mismanagement of the money supply substantially contributed to the economic d...
Conventional wisdom contends that fiscal policy was of secondary importance for the economic recover...