Menová politika Federálneho rezervného systému v rokoch 1929-1933
The Federal Reserve Monetary Policy 1929-1933
Miroslav Titze ()
Politická ekonomie, 2014, vol. 2014, issue 5, 701-719
The paper discusses Federal reserve's monetary policy during banking crisis interim 1929 - 1933. Main goal of the paper is to discuss the monetary policy implementation problems during 1930s based on Real-bills and Riefler-Burgess doctrine. First part of the paper reveals possible conflict between FED's monetary tools and targets arising from gold exchange standard. Expansionary monetary policy during banking crisis was potentially strongly limited by conflict among U.S. financial stability and sustainability of the gold standard. The second part describes monetary policy implementation during 1920s. The third part discusses FED's open market operations during the banking crisis and the fourth part explains the behavior of the interest rates. Finally, the work concludes that FED managed liquidity of U.S. banking system inappropriately and caused many bank deposit suspensions. FED considered monetary condition to be easy and sufficient to cover needs of production. Money interest rates responded very moderately to shortage of banking system's liquidity. We can find the origin of quantitative easing in 1932 when FED first bought large quantities of government securities. This policy was insufficient because of short term duration and the gold outflow neutralizations.
Keywords: interest rates; open market operations; monetary policy implementation; FED; banking crisis (search for similar items in EconPapers)
JEL-codes: E44 E52 E58 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
free of charge
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:prg:jnlpol:v:2014:y:2014:i:5:id:977:p:701-719
Ordering information: This journal article can be ordered from
Redakce Politické ekonomie, Vysoká škola ekonomická, nám. W. Churchilla 4, 130 67 Praha 3
Access Statistics for this article
Politická ekonomie is currently edited by Jiřina Bulisová
More articles in Politická ekonomie from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().