“We Must Deflate”: The Crime of 1920 Revisited
@article{Shaw2016WeMD, title={“We Must Deflate”: The Crime of 1920 Revisited}, author={Christopher W. Shaw}, journal={Enterprise \&\#x0026; Society}, year={2016}, volume={17}, pages={618 - 650} }
Post-World War I Federal Reserve System policy focused on reducing price levels. Faith in liquidationist ideas led Federal Reserve officials to maintain tight-money policies during the depression of 1920–1921. Farmers suffering through this economic crisis objected to contemporary monetary policy. Organized labor and leading Progressive reformer Robert M. La Follette Sr. seconded their criticism. Postwar challenges to the nation’s financial leadership and its priorities bore tangible results by…
5 Citations
The Depression of 1920–1921 and the Return to “Orthodoxy” (a)
- Economics, HistorySSRN Electronic Journal
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In March 1921, the Federal Reserve Board (FRB) wrestled with setting monetary policy during a severe economic contraction, called by many a depression. FRB members disagreed over whether to respond…
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- HistorySSRN Electronic Journal
- 2020
In December 1938, US president Franklin D. Roosevelt (FDR) contemplated recent setbacks that challenged the viability of his program of economic recovery, popularly called the “New Deal.” Various…
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Are credit booms and high leverage in the financial sector better addressed by conventional monetary policy “leaning against the wind” (LAW) or by macroprudential policy? I exploit a natural…
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