Lecture 2: The Federal Reserve after World War II
The Federal Reserve and the Financial Crisis (2012)
“The explanation of this book is that the 1929 depression was so wide, so deep, and so long because the international economic system was rendered unstable by British inability and U. S. unwillingness to assume responsibility for stabilizing it by discharging five functions:(1) maintaining a relatively open market for distress goods;
(2) providing countercyclical, or at least stable, long term lending;
(3) policing a relatively stable system of exchange rates;
(4) ensuring the coordination of macroeconomic policies;
(5) acting as a lender of last resort by discounting or otherwise providing liquidity in financial crisis.”
The World in Depression, 1929-1939 (2nd ed., 1986), Ch. 14 : An Explanation of the 1929 Depression
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Charles P. Kindleberger 5
American economic historian 1910–2003Related quotes
Chancellor of the Exchequer
Source: Memorandum, 'External Action' (21 February 1952) advocating Operation ROBOT, quoted in Correlli Barnett, The Verdict of Peace. Britain Between Her Yesterday and the Future (London: Pan, 2002), p. 162
Source: Organization Theory and Design, 2007-2010, p. 10; Cited in: Jan A. P. Hoogervorst (2009), Enterprise Governance and Enterprise Engineering, p. 80.
Geometry as a Branch of Physics (1949)
Source: The Ordeal of Change (1963), Ch. 13: "Scribe, Writer, and Rebel"
Context: It has been often stated that a social order is likely to be stable so long as it gives scope to talent. Actually, it is the ability to give scope to the untalented that is most vital in maintaining social stability. For not only are the untalented more numerous but, since they cannot transmute their grievances into a creative effort, their disaffection will be more pronounced and explosive. Thus the most troublesome problem which confronts social engineering is how to provide for the untalented and, what is equally important, how to provide against them. For there is a tendency in the untalented to divert their energies from their own development into the management, manipulation, and probably frustration of others. They want to police, instruct, guide, and meddle. In an adequate social order, the untalented should be able to acquire a sense of usefulness and of growth without interfering with the development of talent around them. This requires, first, an abundance of opportunities for purposeful action and self advancement. Secondly, a wide diffusion of technical and social skills so that people will be able to work and manage their affairs with a minimum of tutelage. The scribe mentality is best neutralized by canalizing energies into purposeful and useful pursuits, and by raising the cultural level of the whole population so as to blur the dividing line between the educated and the uneducated. If such an arrangement lacks provisions for the encouragement of the talented it yet has the merit of not interfering with them.
Talcott Parsons (1942) "Propaganda and Social Control". in: Parsons (1954) Essays in sociological theory http://archive.org/details/sociologicaltheo00pars , p. 143
Kenneth Boulding (1975), International Systems: Peace, Conflict Resolution, and Politics. p. 375 as cited in: Bjørn Møller, Håkan Wiberg (1994) Non-offensive defence for the twenty-first century. p. 36
1970s
Source: Systems Engineering Tools, (1965), Systems Engineering Methods (1967), p. 70; Rest of first paragraph of Ch.3