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Full-Text Articles in Economics
The Birth Of The U.S. Federal Reserve, Richard A. Naclerio
The Birth Of The U.S. Federal Reserve, Richard A. Naclerio
History Faculty Publications
On November 16, 2014 the United States Federal Reserve celebrated the centennial of its organization. Its one hundred year legacy has left no doubt of its vast monetary control, its far-reaching geopolitical power, and its enigmatic secrecy. These defining features of the Fed remain a mirror of the men who created it. Wall Street barons and ambitious politicians vied for control over shaping the U.S. Federal Reserve to the specifications that suited the needs of both their country and themselves.
This paper covers men like Senator Nelson Aldrich, J.P. Morgan, Jacob Schiff, and Paul M. Warburg, who were the undeniable …
Monetary Expansion And Bank Credit: A Lack Of Spark, Lucjan T. Orlowski
Monetary Expansion And Bank Credit: A Lack Of Spark, Lucjan T. Orlowski
WCBT Faculty Publications
This paper aims to evaluate the effects of the Federal Reserve monetary expansion over thepast 15 years on the credit channel of monetary policy transmission. To do so, we analyze the allocation of the Fed vast liquidity injections by the U.S. banks. The underlying hypothesis is that the considerable monetary expansion neutralized the bank credit expansion as banks channeled borrowed liquidity into other assets.
The monetary expansion was propelled by the financial crisis of 2007–2008. The crisis led to the rapid deterioration of asset performance and liquidity of the banking system. Among the key factors contributing to the crisis was …