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Debates and dissident inside the FOMC during WW2

Author

Listed:
  • Etienne Farvaque

    (Economie Quantitative, Intégration, Politiques Publiques et Econométrie)

  • Antoine Parent

    (Observatoire français des conjonctures économiques)

  • Piotr Stanek

    (Cracow University)

Abstract

We demonstrate that even though during WWII the interest rate was close to zero supporting the financing of the military effort, dissent inside the FOMC occurred with a similar frequency to other policy episodes. Our analysis highlights that the debates which resulted in dissents turned around two broad issues: the size of the Fed’s balance sheet as well as the functioning of and communication with financial markets. Thus, we argue that the conventional view depicting the Fed as merely accommodating treasury needs should be revised. Our detailed investigation of dissents emphasises the modernity of the objections raised by Fed officials.

Suggested Citation

  • Etienne Farvaque & Antoine Parent & Piotr Stanek, 2018. "Debates and dissident inside the FOMC during WW2," Sciences Po publications info:hdl:2441/2cuu3uj5819, Sciences Po.
    • Handle: RePEc:spo:wpmain:info:hdl:2441/2cuu3uj58199fphtovctj05ish
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Central Banking; Federal open market committee; Governance; Public debt; WW2;
    All these keywords.

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • N12 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: 1913-
    • N42 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: 1913-

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