Current Federal Reserve Policy Under the Lens of Economic History: Politics on the Road to the U.S. Monetary Union

摘要: Is political unity a necessary condition for successful monetary union? The early United States seems leading example of this principle. But the view is misleadingly simple. I review historical record and uncover signs that did not achieve stable union, at least if measured by uniform currency adequate safeguards against systemic risk, until well after Civil War probably founding Federal Reserve. Political change shifting policy positions end up as key factors in shaping union ultimately emerge.