Stability in the Financial System

The S&L crisis of the 1990s led many analysts to review the events that culminated in the banking crisis of the 1930s and the subsequent passage of the Emergency Banking Act, the Banking Act of 1933, the Banking Act of 1935, and other related legislation. The restructuring of the financial system accomplished by this legislation brought about the longest period of financial stability in American history, lasting half a century. This book has two goals: to show why the banking reforms enacted in the 1930s were so successful and to present policy proposals that include the institutional provisions necessary for the financing of the capital development of the economy and a safe payments system.