Fed power : how finance wins

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Fed power : how finance wins

Lawrence R. Jacobs and Desmond King

Oxford University Press, c2016

  • : hardback
  • : [pbk.]

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Includes bibliographical references and index

Description and Table of Contents

Volume

: [pbk.] ISBN 9780190690502

Description

The Federal Reserve, created nearly a century ago, is the most powerful central bank in the world. The Fed's power, which derives from its ability to alter the money supply and move interest rates, weighs heavily not only on the US economy, but on the world economy as well. Not surprisingly, most scholarship on the Fed has focused on its economic role; however, the Fed's power isn't merely economic but is also political. Since its decisions benefit some economic sectors (and hence interest groups) and not others, it effectively makes political choices when shaping economic policy. Lawrence R. Jacobs and Desmond King's Fed Power is the first sustained synthesis of the Fed's political role-especially the way in which it uses its power to benefit some interest groups and not others-since the 2008 financial crisis. The book closely examines the Fed's unilateral actions during the 2008-9 financial crisis when it leveraged half of the country's net worth without a congressional vote or presidential authorization. While the country was spared a second depression, the Fed's actions doled out lopsided benefits to finance. The Fed's favoritism and unprecedented assertions of power provoked public unease and a bipartisan congressional backlash to restrain it. Fed Power concludes with bold proposals to reform America's financial management to prevent future crises and to restore democratic accountability. A powerful critique of how the Federal Reserve governs the American economy, Fed Power will be essential reading for anyone interested in how inequality has increased since 2009, even throughout a liberal presidency committed to reducing inequality.

Table of Contents

Chapter 1: Why Fed Power Matters Chapter 2: The Rise of the Fed State Chapter 3: Concealed Advantage Chapter 4: The Fed's Legitimacy Gap Chapter 5: Preparing for the Next Financial Crisis
Volume

: hardback ISBN 9780199388967

Description

The Federal Reserve is the most powerful central bank in the world. Without its central bank, the American economy would be subject to devastating fluctuations and instability. In maintaining this stability, The Fed dictates interest rates and designs bailouts without the usual checks and balances that pervade US policy making. Most commentators treat the Fed as an impartial referee exercising its independence to advance the best interests of America. Wrong. Lawrence Jacobs and Desmond King's Fed Power is the first sustained examination of the Fed as a potent institution in its own right and an engine for producing concealed advantages for a privileged few. The authors trace the Fed's historic development from the fiery tug-of-war over monetary policy during the 19th century to its current position as a powerful cog in the "big government" machine with unparalleled capacity and autonomy to intervene in private markets. Jacobs and King dissect how the Fed's programs during the Great Recession funneled enormous sums to a select few in the finance industry while leaving Main Street businesses adrift and millions of homeowners underwater. Far from serving the national interest, the Fed increased economic inequality in America and further enriched the "one percent." America is heading into the next financial crisis without an effective central bank. 'End the Fed' is a popular slogan that not only voices the people's displeasure with the Fed's favoritism, but also speaks to a national feeling of the Fed's illegitimacy. Lacking a powerful and capable central bank is a roadmap to mass unemployment and impoverishment. Jacobs and King present an energetic reform agenda to build an accountable central bank in America to ensure the economy remains stable and prosperous.

Table of Contents

  • Chapter 1: Why Fed Power Matters
  • Chapter 2: The Rise of the Fed State
  • Chapter 3: Concealed Advantage
  • Chapter 4: The Fed's Legitimacy Gap
  • Chapter 5: Preparing for the Next Financial Crisis

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