Non-traditional open market operations: lessons from FDR's silver purchase program
When faced with a liquidity trap, a traditional open market purchase will generally be ineffective. Theoretical studies have suggested that intervention in other markets could offer a means of escaping from this trap. We provide some empirical evidence on the importance of non-traditional open market operations by examining the economic effects of FDR's Silver Purchase Program. We employ a structural VAR to assess silver's role in influencing overall money growth, inflation and output over the 1934-1938 period. The results suggest that the US silver purchase program was effective and highlight the potential importance of non-traditional methods for reflating modern economies in a liquidity trap.
Year of publication: |
2005
|
---|---|
Authors: | Burdekin, Richard C. K. ; Weidenmier, Marc D. |
Publisher: |
Claremont, CA : Claremont McKenna College, Department of Economics |
Saved in:
freely available
Series: | Claremont Colleges Working Papers ; 2005-08 |
---|---|
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
Other identifiers: | 508649188 [GVK] hdl:10419/31447 [Handle] |
Source: |
Persistent link: https://www.econbiz.de/10010266428
Saved in favorites
Similar items by person
-
Putting Legal Restrictions Theory to the Test: An Arkansan Experiment, 1861-1863
Weidenmier, Marc D., (2003)
-
Circulating interest-bearing currency: an Arkansas experiment, 1861 - 1863
Burdekin, Richard C. K., (2003)
-
Consols, Financial Stability, and Pax Britannia
Brown, William O., (2004)
- More ...