The Federal Reserve System

November 15, 2004
Wells, an academic, traces the history of the Federal Reserve System from before its creation to the present day, explaining why it was formed and the part it plays in determining American financial policy and practices. The Fed became operational in November 1914, averting a major panic after the war broke out in Europe and the U.S. national banks were allowed to issue a special emergency currency. The author describes the Fed chairmen through the years, the presidential administrations they served, and the economic and policy issues, as well as the power struggles, they faced. He notes that its longtime conflict with the U.S. Treasury was not resolved until 1951, and it took until 1953 for the Fed to become engaged in independent monetary policy. This excellent book highlights the importance of a valued government institution, and although Wells claims he has written it for the general public, librarians should be aware that it is not elementary reading.(Reprinted with permission of Booklist, copyright 2004, American Library Association.)