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Doctrinal determinants, domestic and international of Federal Reserve policy, 1914-1933

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  • Barry Eichengreen

Abstract

This paper describes the doctrinal foundations of Federal Reserve policy from the establishment of the institution through the early 1930s, focusing on the role of international factors in those doctrines and conceptions. International considerations were at most part of the constellation of factors shaping the Federal Reserve?s outlook and policies even in the high gold standard era that ended in 1933. However, neither was the influence of international factors absent, much less negligible. Nor were the Fed?s policies without consequences for the rest of the world. Having described the doctrinal foundations of Federal Reserve policy, I analyze how the doctrines in question influenced the central bank?s actions and shaped the impact of monetary policy on a number of key occasions, focusing in particular on episodes where the international economy and the rest of the world played an important role.

Suggested Citation

  • Barry Eichengreen, 2014. "Doctrinal determinants, domestic and international of Federal Reserve policy, 1914-1933," Globalization Institute Working Papers 195, Federal Reserve Bank of Dallas.
    • Handle: RePEc:fip:feddgw:195
    DOI: 10.24149/gwp195
    Note: Published as: Eichengreen, Barry (2016), "Doctrinal Determinants, Domestic and International, of Federal Reserve Policy 1914-1933," in The Federal Reserve's Role in the Global Economy: A Historical Perspective, ed. Michael D. Bordo and Mark A. Wynne (New York, NY: Cambridge University Press), 14-49.
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    References listed on IDEAS

    as
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    2. Coelho, Philip R. P. & Santoni, G. J., 1991. "Regulatory Capture and the Monetary Contraction of 1932: A Comment on Epstein and Ferguson," The Journal of Economic History, Cambridge University Press, vol. 51(01), pages 182-189, March.
    3. Barry Eichengreen & Arnaud J. Mehl & Livia Chițu & Gary Richardson, 2014. "Mutual Assistance between Federal Reserve Banks, 1913-1960 as Prolegomena to the TARGET2 Debate," NBER Working Papers 20267, National Bureau of Economic Research, Inc.
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    6. Barry Eichengreen & Marc Flandreau, 2012. "The Federal Reserve, the Bank of England, and the Rise of the Dollar as an International Currency, 1914–1939," Open Economies Review, Springer, vol. 23(1), pages 57-87, February.
    7. Barry Eichengreen, 2013. "Does the Federal Reserve Care about the Rest of the World?," Journal of Economic Perspectives, American Economic Association, vol. 27(4), pages 87-104, Fall.
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    9. Bordo, Michael D. & Choudhri, Ehsan U. & Schwartz, Anna J., 2002. "Was Expansionary Monetary Policy Feasible during the Great Contraction? An Examination of the Gold Standard Constraint," Explorations in Economic History, Elsevier, vol. 39(1), pages 1-28, January.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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