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Mutual assistance between f...
This paper reconstructs the forgotten history of mutual assistance among Reserve Banks in the early years of the Federal Reserve System. We use data on accommodation operations by the 12 Reserve Banks between 1913 and 1960 which enabled them to mutualise their gold reserves in emergency situations. Gold reserve sharing was especially important in response to liquidity crises and bank runs. Cooperation among reserve banks was essential for the cohesion and stability of the US monetary union. But fortunes could change quickly, with emergency recipients of gold turning into providers. Because regional imbalances did not grow endlessly, instead narrowing when region-specific liquidity shocks subsided, mutual assistance created only limited tensions. These findings speak to the current debate over TARGET2 balances in Europe
Monografía
monografia Rebiun36702027 https://catalogo.rebiun.org/rebiun/record/Rebiun36702027 m o d cr cn||||||||| 150113s2014 gw a fo i000 0 eng d QB-AR-14-060-EN-N LU-LuOPE 9789289910941 9289910941 10.2866/1657 doi UAO ocn908052058 BEDGE eng BEDGE OCLCO OCLCQ LUPEU OCLCO OCLCL OCLCQ Mutual assistance between federal reserve banks 1913-1960 as prolegomena to the TARGET2 debate Frankfurt am Main European Central Bank [2014], ©2014 Frankfurt am Main Frankfurt am Main European Central Bank 1 online resource (44 pages) table, color illustrations 1 online resource (44 pages) Text txt rdacontent computer c rdamedia online resource cr rdacarrier Working Paper Series 1725-2806 N°1686, July 2014 Free Bibl.: pages 25-29 This paper reconstructs the forgotten history of mutual assistance among Reserve Banks in the early years of the Federal Reserve System. We use data on accommodation operations by the 12 Reserve Banks between 1913 and 1960 which enabled them to mutualise their gold reserves in emergency situations. Gold reserve sharing was especially important in response to liquidity crises and bank runs. Cooperation among reserve banks was essential for the cohesion and stability of the US monetary union. But fortunes could change quickly, with emergency recipients of gold turning into providers. Because regional imbalances did not grow endlessly, instead narrowing when region-specific liquidity shocks subsided, mutual assistance created only limited tensions. These findings speak to the current debate over TARGET2 balances in Europe Specialised banking policy economic recession financial market gold international finance monetary crisis monetary policy money-market liquidity mutual assistance reserve currency monetary policy international finance financial market mutual assistance economic recession monetary crisis reserve currency banking policy money-market liquidity gold Publication UE/CE Publication internationale Ressource internet Texte intégral Eichengreen, Barry Mehl, Arnaud Chitu, Livia Richardson, Gary European Central Bank