A Century of US Central Banking: Goals, Frameworks, Accountability

Several key episodes in the 100-year history of the Federal Reserve have everal key episodes in the 100-year history of the Federal Reserve have been referred to in various contexts with the adjective “Great” attached to been referred to in various contexts with the adjective “Great” attached to them: the Great Experiment of the Federal Reserve’s founding, the Great them: the Great Experiment of the Federal Reserve’s founding, the Great Depression, the Great Infl ation and subsequent disinfl ation, the Great Moderation, Depression, the Great Infl ation and subsequent disinfl ation, the Great Moderation, and the recent Great Recession. Here, I’ll use this sequence of “Great” episodes and the recent Great Recession. Here, I’ll use this sequence of “Great” episodes to discuss the evolution over the past 100 years of three key aspects of Federal to discuss the evolution over the past 100 years of three key aspects of Federal Reserve policymaking: the goals of policy, the policy framework, and accountability Reserve policymaking: the goals of policy, the policy framework, and accountability and communication. The changes over time in these three areas provide a useful and communication. The changes over time in these three areas provide a useful perspective, I believe, on how the role and functioning of the Federal Reserve have perspective, I believe, on how the role and functioning of the Federal Reserve have changed since its founding in 1913, as well as some lessons for the present and for changed since its founding in 1913, as well as some lessons for the present and for the future. the future.