For example, at the end of 1982, when the Depositary Institutions Deregulation and Monetary Control Act
went into effect, there were 14,500 commercial banks in the United States.
but the Monetary Control Act
is working as legislators intended.
The Monetary Control Act
sought to use market discipline to improve the efficiency with which the Fed provides payments services.
The sample breaks we selected are: the closing of the gold window in 1971:Q3; the oil price shock in 1973:Q2; the change in Fed operating procedure toward targeting monetary aggregates in 1979:Q4 (which may coincide with a market perception of an anti-inflation policy stance); and the passage of the Monetary Control Act
The Federal Reserve Banks operate under the requirement, from the Pricing Principles developed by the Board of Governors pursuant to the Monetary Control Act
, that revenues be sufficient to at least cover all costs (the cost-matching requirement).
Subsequent to the Depository Institutions Deregulation and Monetary Control Act
of 1980, most banking experts believed that risky banks could attract deposits by increasing interest rates, thereby placing undue burden on the safety net.
He argues that the Monetary Control Act
of 1980 was a disingenuous means to the Fed's acquisition of power rather than enhancement of control over the money supply.
American banking today is passing through a revolution brought about by widespread deregulation of financial services in the 1980s, beginning with the Depository Institutions Deregulation and Monetary Control Act
of 1980 (DIDMCA) and the Garn-St.
The next major reform came in March 1980, when Congress passed the Depository Institution Deregulation and Monetary Control Act
The Monetary Control Act
of 1980 requires the Federal Reserve to set fees for the services it provides to depository institutions at a level sufficient to recover, over the long run, the actual costs of providing these services, as well as the imputed costs and profits.
The new RAM recognizes that, since the Monetary Control Act
of 1980, an increasing proportion of depository institutions have not significantly changed their demand for base money (vault cash and deposits at Federal Reserve Banks) relative to transactions deposits following changes in statutory reserve requirements.
The focus of the Clark case revolves around the issue of state preemption from the federal Depository Institutions Deregulation and Monetary Control Act