The Federal Reserve System A history

The history of the Federal Reserve System is a familiar tale to economists, but this book targets the general public with a well-written, succinct, and complete account of the development and operations of the nation's monetary authority. Wells (emer., Univ. of Memphis) begins with a brief survey of US financial institutions before the establishment of the Federal Reserve System in 1914. He then proceeds to describe in chronological order the origins of the Federal Reserve System, its role in WWI, its performance during the 1920s and 1930s, its role in WWII and in the Korean War, the growing independence of the Fed in the 1950s, stagflation during the 1970s, vigorous policies to halt inflation in the early 1980s, and subsequent performance up to 2003. Along the way, Wells highlights personalities and personal interactions, internal struggles for domination, and the role of precedents in determining the current modus operandi of the Federal Reserve System. He explains how transactions of the US Treasury and Federal Reserve banks affect private financial institutions and the money supply. Readers with a serious interest in this topic should also consult Allan Meltzer's important A History of the Federal Reserve: v.1: 1913-1951 (CH, May'03). ^BSumming Up: Highly recommended. Public and undergraduate library collections. E. L. Whalen formerly, Clark College

Wells, an academic, traces the history of the Federal Reserve System from before its creation to the present day, explaining why it was formed and the part it plays in determining American financial policy and practices. The Fed became operational in November 1914, averting a major panic after the war broke out in Europe and the U.S. national banks were allowed to issue a special emergency currency. The author describes the Fed chairmen through the years, the presidential administrations they served, and the economic and policy issues, as well as the power struggles, they faced. He notes that its longtime conflict with the U.S. Treasury was not resolved until 1951, and it took until 1953 for the Fed to become engaged in independent monetary policy. This excellent book highlights the importance of a valued government institution, and although Wells claims he has written it for the general public, librarians should be aware that it is not elementary reading. --Mary Whaley Copyright 2004 Booklist