The Fed had to assist with federal debt finance following the 1951 Accord
that freed the central bank from its subsidiary role to the U.
central bank is scholarly and comprehensive although most of the book is concerned with the years after the 1951 Accord
between the Federal Reserve and the U.
The 1951 Accord freed the Fed from the pressure to monetize government debt for fiscal purposes.
Leach, presents a narrative account of the dramatic events that led to the 1951 Accord, including leaked memoranda, shrewd bond market maneuvers, and a disputed meeting with President Truman.
The 1951 Accord freed the Federal Reserve to conduct monetary policy independently to stabilize the macroeconomy.
It gained operational independence after the 1951 Accord, but lost that independence starting with William McChesney Martin in the early 1960s and especially Burns in the 1970s.
The conventional view of the 1951 Accord is incorrect.
The 1951 Accord has generated a misconception about Fed independence and established a misdirected concept of central bank independence in general for decades that emphasized de jure independence.
The 1951 Accord between the Treasury and the Federal Reserve was one of the most dramatic events in U.
1] Just as the 1951 Accord greatly improved monetary policy, an Accord for Fed credit policy established today, while fiscal concerns are still relatively small, could yield significant benefits in the future.
The 1951 Accord established the principle that monetary policy should be used to stabilize the macroeconomy, regardless of the fiscal concerns of the Treasury.
3] The elimination of the agreement between the Bank of Japan and the underwriting syndicate is evocative of the 1951 accord
between the Federal Reserve and U.