The Evolution of Monetary Policy and Banking in the US (eBook)

Preface 5
Contents 7
Part 1 The Federal Reserve and Monetary Policy 10
1 Introduction 11
1.1 Political Role of the Federal Reserve 12
1.2 Legislative Guidance 15
1.3 Economic Guidance 17
1.4 The Preparations for and Conduct of Open-Market Committee Meetings 18
1.5 Initial Conditions 19
2 Marriner S. Eccles and Thomas B. McCabe: 1945 – 1951 21
3 William McChesney Martin, Jr. 1951–1970 27
3.1 Monetary Policy 1951:2–1960:4 27
3.2 Monetary Policy 1961:1–1970:1 35
4 Arthur F. Burns and G. William Miller: 1970 – 1979 49
5 Paul A. Volcker: 1979–1987 65
6 Alan Greenspan: 1987–2006 87
6.1 Monetary Policy 1987:3–1995:2 87
6.2 Monetary Policy 1995:3–2005:4 97
7 Benjamin S. Bernanke 2006– 107
8 Overview and Summary of Part 1 119
8.1 Indicators and Instruments 119
8.2 What Has Changed That Allows Control of Real Interest Rates to Influence GDP and Inflation in the 21st Century? 124
8.3 What Considerations Are Likely to Impede the Effectiveness of Monetary Policy? 126
8.4 What Guidelines for the Federal Reserve Emerge from This History? 132
Part 2 Recovery, Growth, and Adaptation in U.S. Banking 139
9 Introduction: The First Twenty-Five Years 141
9.1 Realizing the Boons: 1945–1960 143
9.2 A Decade of Regulatory Disintegration: 1961–1970 145
10 Resolution: 1971–2007 153
10.1 Innovations, Turbulence, and Restructuring: 1971 – 1983 153
10.2 Further Waffling and Finally Absorbing the Losses: 1984 – 1994 163
10.3 The Aftermath: 1995–2007 172
11 Overview and Summary of Part 2 179
11.1 Comparing the 1920s and the 1990s 179
11.2 Evaluating the Changing Returns and Risk Exposures of Clients of Banks 183
11.3 An Interpretation of Recent History 190
11.4 The Changing Nature of Banks 193
Postscript 197
Monetary Policy 197
Financial Innovation and Regulation 200
References 203