“We Must Deflate”: The Crime of 1920 Revisited

Author:

SHAW CHRISTOPHER W.

Abstract

Post-World War I Federal Reserve System policy focused on reducing price levels. Faith in liquidationist ideas led Federal Reserve officials to maintain tight-money policies during the depression of 1920–1921. Farmers suffering through this economic crisis objected to contemporary monetary policy. Organized labor and leading Progressive reformer Robert M. La Follette Sr. seconded their criticism. Postwar challenges to the nation’s financial leadership and its priorities bore tangible results by producing a number of notable reforms, including modifications of Federal Reserve policy and the Agricultural Credits Act of 1923. In the absence of similar political pressure during the Great Depression, the Federal Reserve System adhered to liquidationist ideas and did not pursue monetary expansion.

Publisher

Cambridge University Press (CUP)

Subject

History,Business, Management and Accounting (miscellaneous)

Reference148 articles.

1. John A . Simpson Papers, Western History Collections, University of Oklahoma, Norman.

2. Brotherhood of Railway and Steamship Clerks, Freight Handlers, Express and Station Employees. Proceedings of the Eleventh Regular and Third Triennial Convention of the Brotherhood of Railway and Steamship Clerks, Freight Handlers, Express and Station Employees, n.p., 1922.

3. South Dakota Bankers Association. Report of the Twenty-ninth Annual Convention of the South Dakota Bankers Association, n.p., 1920.

4. American Farm Bureau Federation. Proceedings of the 17th Annual Convention of the American Farm Bureau Federation, n.p., 1935.

5. Wall Street Journal

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