1. Avoiding Another Financial Crisis
From 1928 - 1929, the Federal Reserve had raised interest rates in hopes of slowing the rapid rise in stock prices. ... The Federal Reserve did little to try to stop the banking panics. ... In addition to allowing the panics to reduce the U.S. money supply, the Federal Reserve also deliberately contracted the money supply and raised interest rates in September 1931. According to the monetarists Milton Friedman, Anna Schwartz and current chairman of Federal Reserve System Ben Bernanke at the time of Great Depression American central bank's policy making was really poor and it unwind loop o...
- Word Count: 1664
- Approx Pages: 7
- Has Bibliography
- Grade Level: Undergraduate