How Quantitative Easing by the Roosevelt Fed Ended in a Crash

Brendan Brown

Chapter 7 in A Global Monetary Plague, 2015, pp 180-196 from Palgrave Macmillan

Abstract: Abstract No one had yet coined the term quantitative easing (QE). From 1934 to 1936, the Federal Reserve’s balance sheet expanded by a similar percentage of GDP as from 2009 to 2013. Moreover, the monetary base at that time, including bank reserves at the Fed, was all non-interest bearing, unlike in recent years (under the Great Monetary Experiment (GME)) when reserves have paid interest at an above market rate (25bp vs. say 0–10bp for short-dated Treasury bills). Also, adding to the power of high-powered money in this early episode of QE (compared to under the GME) was the pro-cyclical fluctuation of prices.

Keywords: Stock Market; Monetary Policy; Federal Reserve; Reserve Requirement; Quantitative Ease (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-47885-6_8

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137478856

DOI: 10.1057/9781137478856_8

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().