The Fourth Branch : The Federal Reserve's Unlikely Rise to Power and Influence

Shrouded in mystery, managed behind closed doors, and the subject of both awe and derision, the Federal Reserve is commonly referred to as the fourth branch of our federal government, with wide-ranging influence over monetary policy, and by extension, banking, price levels, employment rates, and economic growth, income, and wealth. Bernard Shull traces the fascinating and improbable history of this institution from its establishment by an Act of Congress in 1913 to the present day. His careful analysis reveals a paradoxical phenomenon: focusing on three periods of economic stress (the inflation and deflation following World War I, the stock market crash of 1929 and subsequent Depression, and the stagflation and volatility of the 1970s and 1980s), Shull argues that despite convincing evidence that the Fed contributed to these crises, it has consistently emerged from each more powerful and influential than before. Setting the current profile of the Fed against its evolutionary context, The Fourth Branch sheds new light on the Fed's character and its impact on our economic, political, and cultural history. In many ways, the story of the Fed is the classic American epic: turning adversity into opportunity, responding to threat by innovating and adapting. Even today, under attack by liberals and conservatives alike—in the wake of the stock market bubble, economic recession, and rampant job loss—the Fed is poised to remain strong long after the tenure of legendary Chairman Alan Greenspan. Setting the current profile of the Fed against its evolutionary context, The Fourth Branch sheds new light on the Fed's character and its impact on our economic, political, and cultural history. Shrouded In Mystery, Managed Behind Closed Doors, And The Subject Of Both Awe And Derision, The Federal Reserve Is Commonly Referred To As The Fourth Branch Of Our Federal Government, With Wide-ranging Influence Over Monetary Policy And, By Extension, Banking, Price Levels, Employment Rates, And Economic Growth, Income, And Wealth. Bernard Shull Traces The Fascinating And Improbable History Of This Institution From Its Establishment By An Act Of Congress In 1913 To The Present Day. His Careful Analysis Reveals A Paradoxical Phenomenon: Focusing On Three Periods Of Economic Stress (the Inflation And Deflation Following World War I, The Stock Market Crash Of 1929 And Subsequent Depression, And The Stagflation And Volatility Of The 1970s And 1980s), Shull Argues That Despite Convincing Evidence That The Fed Contributed To These Crises, It Has Consistently Emerged More Powerful And Influential Than Before.--jacket. Introduction -- The Federal Reserve's Legacy -- The Idea Of A Central Bank -- A Shock To The System: 1919-1921 -- Coordinated Open Market Operations -- Collapse And Revival: 1929-35 -- Stagflation And The Monetary Experiment Of 1979-82 -- The Federal Reserve's Ascent -- Final Remarks. Bernard Shull. Includes Bibliographical References (p. [181]-243) And Index. Contents......Page 8 List of Illustrations......Page 10 Preface......Page 12 Acknowledgments......Page 16 1. Introduction......Page 18 2. The Federal Reserve's Legacy......Page 34 Appendix: The Idea of a "Central Bank"......Page 77 3. A Shock to the System: 1919–1922......Page 80 Appendix: Coordinated Open Market Operations......Page 107 4. Collapse and Revival: 1929–1935......Page 112 5. Stagflation and the Monetary Experiment of 1979–1982......Page 142 6. The Federal Reserve's Ascent......Page 174 7. Final Remarks......Page 190 Notes......Page 198 Bibliography......Page 244 B......Page 262 C......Page 263 D......Page 264 F......Page 265 H......Page 266 M......Page 267 P......Page 268 S......Page 269 V......Page 270 W......Page 271