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Federal Reserve Bank of New York
The first debt ceiling crisis
In the second half of 1953 the United States, for the first time, risked exceeding the statutory limit on Treasury debt. This paper describes how Congress, the White House, and Treasury officials dealt with the looming crisis—by deferring and reducing expenditures, monetizing “free” gold that remained from the devaluation of the dollar in 1934, and, ultimately, raising the debt ceiling.
Cite this item
Kenneth D. Garbade, The first debt ceiling crisis, Federal Reserve Bank of New York, Staff Reports 783, 01 Jun 2016.
- E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
- H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
- N22 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: 1913-
Keywords: debt ceiling; monetization of gold; U.S. Treasury
This item with handle RePEc:fip:fednsr:783
is also listed on EconPapers
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