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History of and rationales for the Reconstruction Finance Corporation

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  • Walker F. Todd

Abstract

An analysis of the lessons learned from the 1930s financial rescue mechanism, the Reconstruction Finance Corporation, and a comparison of its structure to that of today's Resolution Trust Corporation.

Suggested Citation

  • Walker F. Todd, 1992. "History of and rationales for the Reconstruction Finance Corporation," Economic Review, Federal Reserve Bank of Cleveland, vol. 28(Q IV), pages 22-35.
    • Handle: RePEc:fip:fedcer:y:1992:i:qiv:p:22-35:n:v.28no.4
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    References listed on IDEAS

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    1. William R. Keeton, 1992. "The Reconstruction Finance Corporation: would it work today?," Economic Review, Federal Reserve Bank of Kansas City, vol. 77(Q I), pages 33-54.
    2. George G. Kaufman, 1992. "Bank contagion: theory and evidence," Working Paper Series, Issues in Financial Regulation 92-13, Federal Reserve Bank of Chicago.
    3. Walker F. Todd, 1988. "Lessons of the past and prospects for the future in lender of last resort theory," Working Papers (Old Series) 8805, Federal Reserve Bank of Cleveland.
    4. Ronnie Phillips, 1992. "The 'Chicago Plan' and New Deal Banking Reform," Economics Working Paper Archive wp_76, Levy Economics Institute.
    5. Walker F. Todd, 1988. "Lessons of the past and prospects for the future in lender of last resort theory," Proceedings 215, Federal Reserve Bank of Chicago.
    6. Christopher J. Pike & James B. Thomson, 1991. "The RTC and the escalating costs of the thrift insurance mess," Economic Commentary, Federal Reserve Bank of Cleveland, issue May.
    7. Butkiewicz James L., 1995. "The Impact of a Lender of Last Resort during the Great Depression: The Case of the Reconstruction Finance Corporation," Explorations in Economic History, Elsevier, vol. 32(2), pages 197-216, April.
    8. Beryl Wayne Sprinkel, 1952. "Economic Consequences of the Operations of the Reconstruction Finance Corporation," The Journal of Business, University of Chicago Press, vol. 25, pages 211-211.
    9. Anna J. Schwartz, 1992. "The misuse of the Fed's discount window," Review, Federal Reserve Bank of St. Louis, issue Sep, pages 58-69.
    10. Alan Greenspan, 1989. "Statement by Alan Greenspan," Journal of Applied Corporate Finance, Morgan Stanley, vol. 2(1), pages 31-34, March.
    11. Charles W. Calomiris, 1993. "Financial Factors in the Great Depression," Journal of Economic Perspectives, American Economic Association, vol. 7(2), pages 61-85, Spring.
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    Cited by:

    1. Ben R. Craig & William E. Jackson & James B. Thomson, 2007. "On government intervention in the small-firm credit market and its effect on economic performance," Working Papers (Old Series) 0702, Federal Reserve Bank of Cleveland.
    2. Gary Gorton & Andrew Metrick, 2013. "The Federal Reserve and Panic Prevention: The Roles of Financial Regulation and Lender of Last Resort," Journal of Economic Perspectives, American Economic Association, vol. 27(4), pages 45-64, Fall.
    3. Torres, Ernani & Zeidan, Rodrigo, 2016. "The life-cycle of national development banks: The experience of Brazil's BNDES," The Quarterly Review of Economics and Finance, Elsevier, vol. 62(C), pages 97-104.
    4. Gary Gorton & Lixin Huang, 2004. "Liquidity, Efficiency, and Bank Bailouts," American Economic Review, American Economic Association, vol. 94(3), pages 455-483, June.
    5. Josh Ryan-Collins & Frank van Lerven, 2018. "Bringing the helicopter to ground: a historical review of fiscal-monetary coordination to support economic growth in the 20th century," Working Papers PKWP1810, Post Keynesian Economics Society (PKES).
    6. Duca, John V., 2017. "The Great Depression versus the Great Recession in the U.S.: How fiscal, monetary, and financial polices compare," Journal of Economic Dynamics and Control, Elsevier, vol. 81(C), pages 50-64.
    7. Ben Craig & William Jackson & James Thomson, 2008. "Credit market failure intervention: Do government sponsored small business credit programs enrich poorer areas?," Small Business Economics, Springer, vol. 30(4), pages 345-360, April.
    8. Ben R. Craig & William E. Jackson & James B. Thomson, 2006. "Small firm credit market discrimination, SBA-guaranteed lending, and local market economic performance," Working Papers (Old Series) 0613, Federal Reserve Bank of Cleveland.
    9. William James Adams & Ben R. Craig & James B. Thompson, 2006. "Does Small Business Administration guaranteed lending improve economic performance in lowincome areas?," Proceedings: Community Affairs Dept. Conferences, Federal Reserve Bank of Kansas City, issue Jul, pages 55-85.
    10. Rockoff, Hugh, 2022. "Milton Friedman on bailouts," Journal of Financial Stability, Elsevier, vol. 63(C).
    11. Josh Ryan-Collins, 2021. "Breaking the housing–finance cycle: Macroeconomic policy reforms for more affordable homes," Environment and Planning A, , vol. 53(3), pages 480-502, May.
    12. Lawson, Aidan, 2021. "US Reconstruction Finance Corporation: Preferred Stock Purchase Program," Journal of Financial Crises, Yale Program on Financial Stability (YPFS), vol. 3(3), pages 738-785, April.

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