Where would I find federal rate before 1950?

Discussion in 'Educational Resources' started by jk90029, Dec 20, 2015.

  1. As mentioned above, I heard there was 7 years of <1% at 1930's.
    Possibly last 7 years of <1% is a repetition of the 7 years of 1930's.

    I like to confirm it.
     
    #11     Dec 22, 2015
  2. Maverick74

    Maverick74

    This is false. The Fed dramatically raised rates before and right after the crash. There are no similarities between the 1930's and today.
     
    #12     Dec 22, 2015
  3. Instead of word, please give me clear proof or link, for further evidence.
     
    #13     Dec 27, 2015
  4. Maverick74

    Maverick74

    Come on man, there are so many papers written on this...take your pick:

    http://www.frbsf.org/economic-resea...a-bursting-bubble-or-collapsing-fundamentals/

    "Motivated by a concern about speculation in the stock market, the Fed responded aggressively. Between January and July 1928 the Fed raised the discount rate from 3.5% to 5%. Because nominal prices were falling, the latter translated into a real discount rate of 6%, which is quite high in a year following a recession. At the same time, the Fed engaged in extensive open market operations to drain reserves from the banking system. Hamilton (1987) reports that it sold more than three-quarters of its total stock of government securities: “in terms of the magnitudes consciously controlled by the Federal Reserve, it would have been difficult to design a more contractionary policy.”
     
    #14     Dec 27, 2015
  5. Great. Thanks.

    Probably it is due to lack of my search ability.
     
    #15     Dec 27, 2015