IDEAS home Printed from https://ideas.repec.org/a/sae/reorpe/v27y1995i4p83-111.html
   My bibliography  Save this article

U.S. Monetary Policy In The 1950s: A Radical Political Economic Approach

Author

Listed:
  • Edwin Dickens

    (Department of Economics, University of North Carolina at Asheville, One University Heights, Asheville, NC 28804-3299)

Abstract

This paper uses archival materials to explain what the U.S. monetary authorities tried to do in the decade after they obtained independence from the Treasury Department in March 1951. The U.S. monetary authorities were given independence in order to stabilize the economy on a noninflationary growth path, and this is more or less what they tried to do until March 1956. But, after March 1956, it is shown that the U.S. monetary authorities abandoned their efforts to stabilize the economy in favor of efforts to strengthen capital against labor in wage negotiations, especially in the automobile and steel industries.

Suggested Citation

  • Edwin Dickens, 1995. "U.S. Monetary Policy In The 1950s: A Radical Political Economic Approach," Review of Radical Political Economics, Union for Radical Political Economics, vol. 27(4), pages 83-111, December.
    • Handle: RePEc:sae:reorpe:v:27:y:1995:i:4:p:83-111
    DOI: 10.1177/048661349502700404
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/048661349502700404
    Download Restriction: no
    File URL: https://libkey.io/10.1177/048661349502700404?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Robert Pollin, 1991. "Two Theories of Money Supply Endogeneity: Some Empirical Evidence," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 13(3), pages 366-396, March.
    2. Meltzer, Allan H, 1982. "Comment on "Federal Reserve Control of the Money Stock"," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 14(4), pages 632-640, November.
    3. Gerald Epstein, 1990. "Prime Rates, Federal Reserve Signaling, and Financial Instability," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 12(4), pages 618-635, July.
    4. Basil J. Moore, 1989. "On the Endogeneity of Money Once More," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 11(3), pages 479-487, March.
    5. Hyman P. Minsky, 1957. "Central Banking and Money Market Changes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 71(2), pages 171-187.
    6. Raford Boddy & James Crotty, 1975. "Class Conflict and Macro-Policy: The Political Business Cycle," Review of Radical Political Economics, Union for Radical Political Economics, vol. 7(1), pages 1-19, April.
    7. Robert J. Gordon, 1983. "Using Monetary Control to Dampen the Business Cycle: A New Set of First Principles," NBER Working Papers 1210, National Bureau of Economic Research, Inc.
    8. Jack M. Guttentag, 1966. "The Strategy of Open Market Operations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(1), pages 1-30.
    9. Albert M. Wojnilower, 1980. "The Central Role of Credit Crunches in Recent Financial History," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 11(2), pages 277-340.
    10. Stephen Rousseas, 1986. "The policy implications of Post Keynesian monetary theory," Palgrave Macmillan Books, in: Post Keynesian Monetary Economics, chapter 0, pages 99-119, Palgrave Macmillan.
    11. Christina D. Romer & David Romer, 1993. "Credit channel or credit actions? an interpretation of the postwar transmission mechanism," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 71-149.
    12. Edwin Dickens, 1990. "Financial Crises, Innovations And Federal Reserve Control Of The Stock Of Money," Contributions to Political Economy, Oxford University Press, vol. 9(1), pages 1-23.
    13. Christina D. Romer & David H. Romer, 1990. "New Evidence on the Monetary Transmission Mechanism," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 21(1), pages 149-214.
    14. Basil J. Moore, 1983. "Unpacking the Post Keynesian Black Box: Bank Lending and the Money Supply," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 5(4), pages 537-556, July.
    15. Paul Davidson, 1989. "On the Endogeneity of Money Once More," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 11(3), pages 488-490, March.
    16. Davidson, Paul & Weintraub, Sidney, 1973. "Money as Cause and Effect," Economic Journal, Royal Economic Society, vol. 83(332), pages 1117-1132, December.
    17. Steven M. Fazzari, 1994. "Why Doubt the Effectiveness of Keynesian Fiscal Policy?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 17(2), pages 231-248, December.
    18. Gary A. Dymski, 1990. "Money and Credit in Radical Political Economy: A Survey of Contemporary Perspectives," Review of Radical Political Economics, Union for Radical Political Economics, vol. 22(2-3), pages 38-65, June.
    19. Basil J. Moore, 1979. "The Endogenous Money Stock," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 2(1), pages 49-70, October.
    20. Charles Goodhart, 1989. "Has Moore Become Too Horizontal?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 12(1), pages 29-34, September.
    21. Stephen Rousseas, 1989. "On the Endogeneity of Money Once More," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 11(3), pages 474-478, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. James Culham & John E. King, 2013. "Horizontalists and Verticalists after 25 years," Review of Keynesian Economics, Edward Elgar Publishing, vol. 1(4), pages 391—405-3, October.
    2. Edwin Dickens, 1999. "A Political-Economic Critique of Minsky's Financial Instability Hypothesis: The case of the 1966 financial crisis," Review of Political Economy, Taylor & Francis Journals, vol. 11(4), pages 379-398.
    3. Levrero, Enrico Sergio & Deleidi, Matteo, 2017. "The money creation process: A theoretical and empirical analysis for the US," MPRA Paper 81970, University Library of Munich, Germany.
    4. Louis-Philippe Rochon & Sergio Rossi, 2013. "Endogenous money: the evolutionary versus revolutionary views," Review of Keynesian Economics, Edward Elgar Publishing, vol. 1(2), pages 210-229, January.
    5. Cavalieri, Duccio, 1996. "Sullo statuto teorico dell'offerta di moneta: un dibattito con Augusto Graziani [On the theoretic status of the supply of money: a debate with Augusto Graziani]," MPRA Paper 43888, University Library of Munich, Germany.
    6. Kevin S. Nell, 2000. "The Endogenous/Exogenous Nature of South Africa’s Money Supply Under Direct and Indirect Monetary Control Measures," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 23(2), pages 313-329, December.
    7. Smant, David / D.J.C., 2002. "Bank credit in the transmission of monetary policy: A critical review of the issues and evidence," MPRA Paper 19816, University Library of Munich, Germany.
    8. Aleš Krejdl, 2003. "Alternativní postkeynesovské modely determinace peněžní zásoby [Alternative post-keynesian models of money supply determination]," Politická ekonomie, Prague University of Economics and Business, vol. 2003(2), pages 263-285.
    9. Jafar HAGHIGHAT, 2011. "How Much Control Dose Central Bank of Iran over Money Supply?," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 1(7), pages 1-29, December.
    10. Robert Pollin, 2008. "Considerations on Interest Rate Exogeneity," Working Papers wp177, Political Economy Research Institute, University of Massachusetts at Amherst.
    11. Giuseppe Fontana, 2004. "Rethinking Endogenous Money: A Constructive Interpretation Of The Debate Between Horizontalists And Structuralists," Metroeconomica, Wiley Blackwell, vol. 55(4), pages 367-385, November.
    12. Lavoie, Marc, 1982. "Les post-keynésiens et la monnaie endogène," L'Actualité Economique, Société Canadienne de Science Economique, vol. 58(1), pages 191-221, janvier-j.
    13. Hassan, Faiza & Qayyum, Abdul, 2013. "Modelling the Demand for Bank Loans by Private Business Sector in Pakistan," MPRA Paper 55366, University Library of Munich, Germany, revised Apr 2014.
    14. Thomas I. Palley, 2008. "Endogenous Money: Implications for the Money Supply Process, Interest Rates, and Macroeconomics," Working Papers wp178, Political Economy Research Institute, University of Massachusetts at Amherst.
    15. Thomas I. Palley, 2013. "Horizontalists, verticalists, and structuralists: the theory of endogenous money reassessed," Review of Keynesian Economics, Edward Elgar Publishing, vol. 1(4), pages 406—424-4, OCT.
    16. Biagio Bossone, 2021. "Bank Seigniorage in a Monetary Production Economy," Working Papers PKWP2111, Post Keynesian Economics Society (PKES).
    17. J. Mark MUNOZ & Al NAQVI, 2017. "Artificial Intelligence and Urbanization: The Rise of the Elysium City," Journal of Economics and Political Economy, KSP Journals, vol. 4(1), pages 1-13, March.
    18. Jean Louis EKOMANE & Benjamin YAMB, 2016. "The Measurement of Credit Channel in the CEMAC Zone," Journal of Economics and Political Economy, KSP Journals, vol. 3(4), pages 744-766, December.
    19. Badarudin, Z.E. & Ariff, M. & Khalid, A.M., 2013. "Post-Keynesian money endogeneity evidence in G-7 economies," Journal of International Money and Finance, Elsevier, vol. 33(C), pages 146-162.
    20. M. Lopreite, 2012. "The endogenous money hypothesis and securitization: the Euro area case (1999-2010)," Economics Department Working Papers 2012-EP02, Department of Economics, Parma University (Italy).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:reorpe:v:27:y:1995:i:4:p:83-111. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.urpe.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.