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Article: Monetary policy in the Great Depression: what the Fed did, and why. (Federal Reserve System)(includes related article)
- Article from:
- Federal Reserve Bank of St. Louis Review
- Article date:
- March 1, 1992
- Author:
CopyrightCOPYRIGHT 1992 Federal Reserve Bank of St. Louis. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Sixty years ago the United States - indeed, most of the world - was in the midst of the Great Depression. Today, interest in the Depression's causes and the failure of government policies to prevent it continues, peaking whenever the stock market crashes or the economy enters a recession. In the 1930s, dissatisfaction with the failure of monetary policy to prevent the Depression, or to revive the economy, led to sweeping changes in the structure of the Federal Reserve System. One of the most important changes was the creation of the Federal Open Market Committee (FOMC) to direct open market policy. Recently Congress has again considered possible changes in the Federal ...