The First Market Monetarist Book is out

David Beckworth is the editor: http://www.independent.org/store/book.asp?id=100

Congress created the Federal Reserve System in 1913 to tame the business cycle once and for all. Optimists believed central banking would moderate booms, soften busts, and place the economy on a steady trajectory of economic growth. A century later, in the wake of the worst recession in fifty years, Editor David Beckworth and his line-up of noted economists chronicle the critical role the Federal Reserve played in creating a vast speculative bubble in housing during the 2000s and plunging the world economy into a Great Recession.

As commentators weigh the culpability of Wall Street’s banks against Washington’s regulators, the authors return our attention to the unique position of the Federal Reserve in recent economic history. Expansionary monetary policy formed the sine qua non of the soaring housing prices, excessive leverage, and mispricing of risk that characterized the Great Boom and the conditions for recession.

Yet as Boom and Bust Bankingalso explains, the Great Recession was not an inevitable result of the Great Boom. Contrary to the conventional wisdom, the Federal Reserve in fact tightened rather than loosened the money supply in the early days of the recession. Addressing a lacuna in critical studies of recent Federal Reserve policy, Boom and Bust Banking reveals the Federal Reserve’s hand in the economy’s deterioration from slowdown to global recession.  

At the close of the most destructive economic episode in a half-century, Boom and Bust Banking reconsiders the justifications for central banking and reflects on possibilities for reform. With the future ripe for new thinking, this volume is essential for policy makers and concerned citizens

3 thoughts on “The First Market Monetarist Book is out

  1. Pingback: New Market Monetarist book « The Market Monetarist

  2. Not sure if I agree with David that loose monetary policy contributed greatly to the housing boom, although I do agree with him that tight policy created the great recession.

    What are your thoughts on this Marcus?

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