Stephen Axilrod's book, "The Federal Reserve: What Everyone Needs to Know," is a rich description of the Federal Reserve Bank, its authority, organization, and application of policies to combat inflation and deflation.
The book has eight chapters, including an "Introduction" and a "Conclusion." To guide the reader's interest in specific topics related to the FRB's objectives, structure, policy instruments, and experience dealing with inflation, recessions, credit crunches, and so forth, each chapter is developed around questions and answers. Overall there are 68 questions followed by answers that will satisfy any reader's craving for understanding the FRB's role in the economy. I must add that each answer is written in plain language devoid of technical lingo. While the book should be read in its entirety to have a firm grasp of the Fed, Chapters 4, 6 and 7 constitute the backbone of the book. In chapter 4, he discusses monetary policy tools and the Fed's reliance on open market operations targeted to controlling the federal funds rate (i.e., the rate banks charge each other for borrowing funds) and its use of quantitative easing to stimulate the economy during and after the 2008-2009 recession. There is also a useful section on the relationship between the Treasury and the Fed, and the Fed's direct purchases of long-term Treasury bonds to help finance World War II.
In Chapter 6, Axilroad evaluates the strengths and weakness of monetary policy, showing that monetary policy only works indirectly through interest rates and liquidity and it is most effective for controlling inflation but somewhat limited in fighting recessions. Monetary policy also is handicapped by public confidence in the financial system. He concludes that despite its shortcomings, fiscal policy (i.e., reducing taxes and/or increasing government spending) is far more effective and should accompany monetary policy to rescue the economy from downturns. Also included in this chapter is an eye-opening discussion of the Dodd-Frank (Wall Street Reform and Consumer Protection) Act of 2010 designed to avoid a repeat of the 2008-2009 financial collapse.
Written with objectivity, Chapter 7 is highly valuable for those who want to learn about the FRB's role in addressing the two most threatening postwar economic events (the inflation of the 1970s, and the more recent liquidity crisis along with the subsequent great recession of 2007-2009).
Download the free Kindle app and start reading Kindle books instantly on your smartphone, tablet, or computer - no Kindle device required.
Read instantly on your browser with Kindle for Web.
Using your mobile phone camera - scan the code below and download the Kindle app.
Next 5 for you in this series
See full series
Total Price:
$41.15
More like The Federal Reserve: What Everyone Needs to Know®
Page 1 of 1Start overPage 1 of 1
Loading...
Customers who bought this item also bought
Page 1 of 1 Start overPage 1 of 1
About the author
Follow authors to get new release updates, plus improved recommendations.
Top reviews from other countries
Nathan Beers
Horrible. This guy is obviously a Mason who is ...
Reviewed in Canada on May 21, 2015