A History of Central Banking in Great Britain and the United States (Studies in Macroeconomic History)

Central banks in Great Britain and the United States arose early in the financial revolution. The Bank of England was created in 1694 while the first Banks of the United States appeared in 1791-1811 and 1816-36, and were followed by the Idependent Treasury, 1846-1914. These institutions, together with the Suffolk Bank and the New York Clearing House, exercised important central banking function before the creation of the Federal Reserve System in 1913. Significant monetary changes in the lives of these British and American institutions are examined within a framework that deals with the knowledge and behavior of central bankers and their interactions with economists and politicians. Central Bankers' behavior has shown considerable continuity in the influence of incentives and their interest in the stability of the financial markets. For example, the Federal Reserve's behavior during the Great Depression, the low inflation of the 1990s, and its resurgence the next decade follow from its structure and from government pressures rather than accidents of personnel. Front cover 1 Contents 10 Figures 13 Tables 15 Preface 16 1. Understanding Central Bankers and Monetary Policy 18 2. An Introduction to Central Bankers 25 3. Making a Central Bank: I. Surviving 49 4. Making a Central Bank: II. Looking for a Rule 77 5. Making a Central Bank: III. Means and Ends 106 6. Central Banking in the United States, 1790-1914 134 7. Before the Crash: The Origins and Early Years of the Federal Reserve 173 8. The Fall and Rise of the Federal Reserve, 1929-1951 211 9. Central Banking in the United States after the Great Depression, 1951 to the 1960s 261 10. The Bank of England after 1914 294 11. Rules versus Authorities 345 12. Permanent Suspension 367 13. Back to the Beginning? New Contracts for New Companies 392 References 418 Index 442 Central banks in Great Britain and the United States arose early in the financial revolution. The Bank of England was created in 1694 while the first Banks of the United States appeared in 1791-1811 and 1816-36, and were followed by the Independent Treasury, 1846-1914. These institutions, together with the Suffolk Bank and the New York Clearing House, exercised important central banking function before the creation of the Federal Reserve System in 1913. Significant monetary changes in the lives of these British and American institutions are ..