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Bank Influence and the Failure of US Monetary Policy during the 1953-54 Recession

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  • Edwin Dickens

Abstract

This paper presents archival and econometric evidence that challenges the conventional belief that independent central banks are necessary to stabilise economies on non-inflationary growth paths. The evidence suggests that, when the US central bank—the Federal Reserve—became independent of democratic control in March 1951, it became dependent on the large banks. It is shown that excessive banker influence caused the Federal Reserve to miss its first opportunity to stabilise the economy, during the 1953-54 recession.

Suggested Citation

  • Edwin Dickens, 1998. "Bank Influence and the Failure of US Monetary Policy during the 1953-54 Recession," International Review of Applied Economics, Taylor & Francis Journals, vol. 12(2), pages 221-240.
    • Handle: RePEc:taf:irapec:v:12:y:1998:i:2:p:221-240
    DOI: 10.1080/02692179800000004
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    References listed on IDEAS

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    1. Charles Goodhart, 1988. "The Evolution of Central Banks," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262570734, December.
    2. Ira N. Gang & Gil S. Epstein, 2002. "The Political Economy Of Kosher Wars," Departmental Working Papers 200227, Rutgers University, Department of Economics.
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