RICHMOND, Va., Oct. 10 /PRNewswire/ -- On March 4, 1951, the Federal
Reserve and the Treasury released a joint announcement of an understanding
that has come to be known as the Treasury-Federal Reserve Accord. This Accord
is commemorated in the latest issue of Economic Quarterly, a Federal Reserve
Bank of Richmond publication.
The Economic Quarterly plays tribute to this watershed agreement that
released the Federal Reserve from the obligation to support the market for
U.S. government debt at pegged prices and made possible the independent
conduct of monetary policy. In this issue, previously unpublished, eyewitness
details are provided by Federal Reserve Board of Governors economist Ralph F.
Leach, who served during the Truman administration. The dramatic events of
1951 laid the institutional foundation for the Federal Reserve's pursuit of
low inflation and economic stabilization.
The Economic Quarterly's other four articles span the 20th century, with
topics including real-bills monetary policy in the 1920s, the often divergent
political forces that forged the accord's structure, and proposals for new
accords related to credit policy and the kinds of assets the Fed should buy.
Contributors include Federal Reserve Bank of Richmond President J. Alfred
Broaddus, Jr., Marvin S. Goodfriend, Robert L. Hetzel, and Thomas M. Humphrey.
Additional information, including an "Introduction to the History of the
Accord," biographies, and an annotated bibliography, is available at
http://www.rich.frb.org/research/treasury/ . The Economic Quarterly is a free
publication containing economic analysis pertinent to Federal Reserve monetary
and banking policy. For copies or more information, contact the Federal
Reserve Bank of Richmond's Public Affairs office at 804-697-8108 or visit
Richmond Fed's Web site at http://www.rich.frb.org .
SOURCE Federal Reserve Bank of Richmond
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Related links:
http://www.rich.frb.org
http://www.rich.frb.org/research/treasury
CONTACT:
Jeffrey Lacker, Research, +1-804-697-8279, or
Marsha Shuler, Public Affairs, +1-804-697-8192, both of the
Federal Reserve Bank of Richmond
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