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Federal Reserve Bank of Cleveland
Working Papers (Old Series)
The Federal Reserve System and World War I: Designing Policies without Precedent
The Federal Reserve System failed to prevent the collapse of intermediation during the Great Depression (1929-1933) and took action as if it was unaware of policies that should have been taken in the event of widespread bank runs. The National Banking Era panics and techniques to alleviate them should have been useful references for how to alleviate a financial crisis. We suggest that the overwhelming effort to finance World War I combined with a perspective held by contemporary Federal Reserve officials that the central bank legislation was sufficient to overcome financial crises are key reasons why the historical experiences were overlooked.
Cite this item
Ellis W. Tallman & Margaret M. Jacobson, The Federal Reserve System and World War I: Designing Policies without Precedent, Federal Reserve Bank of Cleveland, Working Papers (Old Series) 1510, 07 Jul 2015.
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
- E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
- N22 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: 1913-
Keywords: Crisis prevention; liquidity provision; Federal Reserve Act
This item with handle RePEc:fip:fedcwp:1510
is also listed on EconPapers
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