As mentioned above, I heard there was 7 years of <1% at 1930's.
Possibly last 7 years of <1% is a repetition of the 7 years of 1930's.
I like to confirm it.
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Where would I find federal rate before 1950?
- Thread starter jk90029
- Start date
As mentioned above, I heard there was 7 years of <1% at 1930's.
Possibly last 7 years of <1% is a repetition of the 7 years of 1930's.
I like to confirm it.
As mentioned above, I heard there was 7 years of <1% at 1930's.
Possibly last 7 years of <1% is a repetition of the 7 years of 1930's.
I like to confirm it.
This is false. The Fed dramatically raised rates before and right after the crash. There are no similarities between the 1930's and today.
This is false. The Fed dramatically raised rates before and right after the crash. There are no similarities between the 1930's and today.
Instead of word, please give me clear proof or link, for further evidence.
Instead of word, please give me clear proof or link, for further evidence.
Come on man, there are so many papers written on this...take your pick:
http://www.frbsf.org/economic-resea...a-bursting-bubble-or-collapsing-fundamentals/
"Motivated by a concern about speculation in the stock market, the Fed responded aggressively. Between January and July 1928 the Fed raised the discount rate from 3.5% to 5%. Because nominal prices were falling, the latter translated into a real discount rate of 6%, which is quite high in a year following a recession. At the same time, the Fed engaged in extensive open market operations to drain reserves from the banking system. Hamilton (1987) reports that it sold more than three-quarters of its total stock of government securities: “in terms of the magnitudes consciously controlled by the Federal Reserve, it would have been difficult to design a more contractionary policy.”