The political lessons of Depression-era banking reform
The banking legislation of the 1930s took very little time to pass, was unusually comprehensive, and unusually responsive to public opinion. Ironically, the primary motivations for the main bank regulatory reforms in the 1930s (Regulation Q, the separation of investment banking from commercial banking, and the creation of federal deposit insurance) were to preserve and enhance two of the most disastrous policies that contributed to the severity and depth of the Great Depression--unit banking and the real bills doctrine. Other regulatory changes, affecting the allocation of power between the Federal Reserve System (Fed) and the Treasury, were intended to reduce the independence of the Fed, while giving the opposite impression. Banking reforms in the 1930s had significant negative consequences for the future of US banking, and took a long time to disappear. The overarching lesson is that the aftermath of crises are moments of high risk in public policy. Copyright 2010, Oxford University Press.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:oup:oxford:v:26:y:2010:i:3:p:540-560. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.