Monetary Policy in the Great Depression: What the Fed Did, and Why

@article{Wheelock1992MonetaryPI,
  title={Monetary Policy in the Great Depression: What the Fed Did, and Why},
  author={David C. Wheelock},
  journal={Canadian Parliamentary Review},
  year={1992},
  volume={74},
  pages={3-28}
}
  • David C. Wheelock
  • Published 1 March 1992
  • Economics, History
  • Canadian Parliamentary Review
SIXTY YEARS AGO the United States— indeed; most of the world—was in the midst of the Great Depression. Today, interest in the Depression's causes and the failure of government policies to prevent it continues, peaking whenever the stock market crashes or the economy enters a recession. In the 1930s, dissatisfaction with the failure of monetary policy to prevent the Depression, or to revive the economy, led to sweeping changes in the structure of the Federal Reserve System. One of the most… 
Fed Policy Errors of the Great Depression
Following the analysis of Milton Friedman, the conventional view of the monetary policy errors of the Great Depression is that the Fed’s policy was contractionary during the two periods of sharp
Seasonal Accommodation and the Financial Crises of the Great Depression: Did the Fed "Furnish an Elastic Currency?"
EGINNING WITH THE stock market crash in October 1929, the United States suffered a series of financial crises that mark the Great Depression. In each crisis, the number of bank failures and the
Two Who Called the Great Depression: An Initial Formulation of the Monetary‐Origins View
The consensus view in the economics profession today is that the genesis of the Great Depression was the tightening of policy by the Fed in 1928 and 1929, mainly to stem the stock market boom.
Volatile Times and Persistent Conceptual Errors: U.S. Monetary Policy 1914-1951
This paper describes the motives that gave rise to the creation of the Federal Reserve System , summarizes the history of Fed monetary policy from its origins in 1914 through the Treasury-Fed Accord
Monetary explanations of the Great Depression: a selective survey of empirical evidence
Seventy years after the Great Depression, economists still debate the causes of this economic catastrophe. Two leading explanations are distinguished by whether or not the Federal Reserve’s monetary
Understanding the Great Depression in the United States versus Canada
It is now recognized that the Great Depression should be viewed as a global phenomenon with its roots in the gold standard so arduously restored in Great Britain in 1925. Temin (1989) and Eichengreen
Expansionary Monetary Policy at the Federal Reserve in the 1920s
This paper analyzes the two main divergent interpretations of Federal Reserve monetary policy in the 1920s, the expansionary view described by Rothbard (2008a [1963]) and earlier “Austrian” writers,
Scrutiny of the 1929 Global Financial Crisis: Causes, Features, Consequences and Remedy Tools
The Worldwide economic downturn that began in 1929 and lasted almost until 1939 was the longest and most severe financial crisis that ever led to depression and experienced by the developed
Conducting monetary policy without government debt: the Fed's early years
The Federal Reserve implements its monetary policy by using open market operations in U.S. government securities to target the federal funds rate. A substantial decline in the stock of U.S. Treasury
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 63 REFERENCES
Regulatory Capture and the Monetary Contraction of 1932: A Comment on Epstein and Ferguson
The Great Depression of the 1930s occupies a pivotal position in the history of the American economy. Historians and economists still debate the origins of the Depression and the reasons for its
A public choice theory of the great contraction
ConclusionThe conventional (Chicago) wisdom about the Great Contraction is that it was the result of a massive policy failure. According to this view, the collapse of the economy was brought about
A Monetary History of the United States
Writing in the June  issue of the Economic Journal, Harry G. Johnson begins with a sentence seemingly calibrated to the scale of the book he set himself to review: “The long-awaited monetary
A public choice theory of the Great Contraction: Further evidence
In recent issues of this journal, perhaps no other paper has inspired as intense interest as our (Anderson, Shughart and Tollison, 1988) challenge to the Friedman-Schwartz (1963) "mistake theory" of
The Rules versus Discretion Debate Over Monetary Policy in the 1920s
The question of whether monetary policy should be guided by legislated rules or left to the discretion of the policymaker has been a subject of debate since the early days of central banking. An
"Liquidation" Cycles: Old-Fashioned Real Business Cycle Theory and the Great Depression
During the 1929-33 slide into the Great Depression, the Federal Reserve took almost no steps to keep the money supply or the price level stable. Instead, the Federal Reserve acted - disastrously - as
Monetary Policy, Loan Liquidation, and Industrial Conflict: The Federal Reserve and the Open Market Operations of 1932
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
An alternative to “A public choice theory of the Great Contraction”
In the October 1988 edition of this journal Anderson, Shughart and Tollison (1988: 4) argued that "restrictive monetary policy of the Fed in the 1929-1933 period was ... rational, self-interested
Non-Monetary Effects of the Financial Crisis in the Propagation of the Great Depression
This paper examines the effects of the financial crisis of the 1930s onthe path of aggregate output during that period. Our approach is complementary to that of Friedman and Schwartz, who emphasized
A New Interpretation of the Onset of the Great Depression
Over the 1919-1929 period, fluctuations in the value of stock trading on the New York Stock Exchange exercised statistically significant and economically important impacts on the demand to hold cash
...
1
2
3
4
5
...