Fed Policy Procedures:Historical Perspective

Mishkin 19 Appendix

Discovery of Open Market Operations

Assets Liabilities

Real Bills Doctrine

Discount Loans Reserves

Discovery of Open Market Operations

Assets Liabilities

Discount Loans Reserves

Treasuries

The Great Depression: Stock Market Crash

The Great Depression: Soup Kitchens

The Great Depression: Money Supply Equation

1

1 n

d

CDM MB DL

C ERr

D D

The Great Depression: Walter’s Wiggles

The Great Depression: CCC and Fiscal Policy

Reserve Requirements as Policy Tool

The Great Depression: 1937 Debacle

1

1 n

d

CDM MB DL

C ERr

D D

War Finance and the Pegging of Interest Rates: 1942-1951

Targeting Money Market Conditions:The 1950’s and 1960’s

e

GDP i MB M

Inflation Inflation i MB M

Targeting Money Market Conditions:The 1950’s and 1960’s

Targeting Monetary Aggregates:The 1970’s

New Fed Operating Procedures:October 1979 – October 1982

De-Emphasis of Monetary Aggregates:October 1982 – Early 1990’s

De-Emphasis of Monetary Aggregates:October 1982 – Early 1990’s

GDP i DL MB M

Federal Funds Targeting Again:Early 1990’s and Beyond

Greenspan Put

Preemptive Strikes Against Inflation

Preemptive Strikes:ENRON

Preemptive Strikes:Long Term Capital Management

Preemptive Strikes:Lehman Brothers

Preemptive Strikes:The Global Financial Crisis

Preemptive Strikes:The Global Financial Crisis

Preemptive Strikes:The Global Financial Crisis