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Pastimes : Book Nook -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (163)	4/4/2001 12:12:53 AM
From: JF Quinnelly	Read Replies (1) \| Respond to of 443

Apparently the proper response to a deflation has been well known to bankers for a long time (I think Friedman and Schwartz cites Bagehot's Lombard Street, Schumpeter mentions that and some other works from around 1870) Strong, the head of the NY Fed, died shortly before all the trouble began. Strong had pretty much set Fed policy all through the 20s. I wonder if the Strong-less Fed wasn't suffering from a lack of leadership when they were confronted with the Depression. It seems like they may have frozen with indecision, because what they did is fail to act.