Evan A. Schnidman: When Will the U.S. Hit The 1947 Wall?Roundup: Historians' Take
tags: economic history, inflation, 1947, Evan A. Schnidman
Evan A. Schnidman is a Ph.D. candidate at Harvard University studying how politics and finance play a role in central-bank decision making. He is also the founder and primary author of FedPlaybook.com, a central bank forecasting and analysis resource for investors.
After a decade of financial struggle and a severe crisis in Europe that caused a massive ripple effect around the world, the United States found itself engaging in unprecedentedly loose monetary policy to finance public debt. You might have guessed I was describing the economy at the start of 2013, but despite financial prognostications that 2013 will be a good year for the U.S. economy, the parallels between the U.S. economy in 1947 and in 2013 are quite stark.
During and immediately after World War II, the Fed maintained extremely low interest rates in order to reduce war-financing costs for the government. As these policies became unnecessary and inflationary after the war, the Fed was compelled by the Treasury to maintain the low cost of debt. The result of this highly accommodating monetary policy was 14 percent inflation in 1947 and rising unemployment that persisted into the early 1950s....
comments powered by Disqus
- Nazi Doctor Mengele Now Himself Object of Medical Study
- Critics Attacked, History Revised as China Nationalism Rises
- Unpopular out of the gate, Trump making history one more time
- A New Martin Luther King Jr. Parade Divides a Virginia Town
- Trump Changes Plans on MLK Day Visit To African American History Museum
- Secret WWI telegram holds lessons for today, historians say
- Antisemite, Holocaust denier … yet David Irving claims fresh support
- Timothy Garton Ash says liberalism failed in 2016 because it had succeeded
- Tim Naftali calls on Obama to declassify US intelligence community's assessment of Russian intentions and activities in the 2016 presidential election
- David Olusoga says Britain’s black history has been shamefully whitewashed