The Evolution of Monetary Policy and Banking in the US

Preface

Contents

Part 1 The Federal Reserve and Monetary Policy

1 Introduction

1.1 Political Role of the Federal Reserve

1.2 Legislative Guidance

1.3 Economic Guidance

1.4 The Preparations for and Conduct of Open-Market Committee Meetings

1.5 Initial Conditions

2 Marriner S. Eccles and Thomas B. McCabe: 1945 – 1951

3 William McChesney Martin, Jr. 1951–1970

3.1 Monetary Policy 1951:2–1960:4

3.2 Monetary Policy 1961:1–1970:1

4 Arthur F. Burns and G. William Miller: 1970 – 1979

5 Paul A. Volcker: 1979–1987

6 Alan Greenspan: 1987–2006

6.1 Monetary Policy 1987:3–1995:2

6.2 Monetary Policy 1995:3–2005:4

7 Benjamin S. Bernanke 2006–

8 Overview and Summary of Part 1

8.1 Indicators and Instruments

8.2 What Has Changed That Allows Control of Real Interest Rates to Influence GDP and Inflation in the 21st Century?

8.3 What Considerations Are Likely to Impede the Effectiveness of Monetary Policy?

8.4 What Guidelines for the Federal Reserve Emerge from This History?

Part 2 Recovery, Growth, and Adaptation in U.S. Banking

9 Introduction: The First Twenty-Five Years

9.1 Realizing the Boons: 1945–1960

9.2 A Decade of Regulatory Disintegration: 1961–1970

10 Resolution: 1971–2007

10.1 Innovations, Turbulence, and Restructuring: 1971 – 1983

10.2 Further Waffling and Finally Absorbing the Losses: 1984 – 1994

10.3 The Aftermath: 1995–2007

11 Overview and Summary of Part 2

11.1 Comparing the 1920s and the 1990s

11.2 Evaluating the Changing Returns and Risk Exposures of Clients of Banks

11.3 An Interpretation of Recent History

11.4 The Changing Nature of Banks

Postscript

Monetary Policy

Financial Innovation and Regulation

References