The Greenspan Federal Reserve Role in the Financial Crisis
AbstractThe Federal Reserve System or the Fed is one of the most prestigious institutions in the world.Founded by the Federal Reserve Act in 1913, the Fed has the responsibility of setting the monetary policy of the U.S. The Fed's actions affect the money supply in the U.S. market which has a direct influence on interest rates, growth and inflation. To better understand the role of the Fed we will first describe its structure and organization. We will then see who is really behind the central bank's actions and who holds the reins of power inside the institution that plays the most important role in financial markets throughout the world. The monetary policy implemented by the Fed is closely monitored by major financial markets and institutions as it affects directly investments and security prices. We will explain clearly how the Fed conducts its monetary policy using three major tools to either decrease or increase money supply: open market operations, adjusting the discount rate and adjusting the reserve requirement ratio. We examine the main objectives of the Fed's monetary policies and how those objectives maintain a "conflict of interest" relationship. Finally we will examine the policies of the former chairman of the Fed Alan Greenspan (1987-2006) which contributed to the current crisis. We will also briefly assess the policy performance of Ben Bernanke.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, University of Venice "Ca' Foscari" in its series Working Papers with number 2009_04.
Date of creation: 2009
Date of revision:
Contact details of provider:
Postal: Cannaregio, S. Giobbe no 873 , 30121 Venezia
Web page: http://www.unive.it/dip.economia
More information through EDIRC
Federal Reserve; Monetary Policy; Alan Greenspan; Ben Bernanke; Wall Streets;
Find related papers by JEL classification:
- E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
- E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- 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
- G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statistics
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Geraldine Ludbrook).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.