Financial institutions in the early 20th century that operated with fewer regulations than national banks, making them more vulnerable to runs.
A situation where a large number of depositors withdraw their funds simultaneously due to fear of the institution's insolvency.
The spread of a financial crisis from one market or institution to others.
The availability of cash or assets that can be quickly converted to cash to meet financial obligations. A lack of liquidity was the core problem of the 1907 panic.
The risk that the failure of one part of the financial system can trigger a cascade of failures throughout the entire system.
A national institution responsible for managing a country's currency and money supply and acting as a lender of last resort. The U.S. lacked one in 1907.
The dominant American financier of the era, who used his personal influence and capital to organize a private bailout and stop the Panic of 1907.
A prominent banker who witnessed the panic and was a key participant in the meetings organized by J.P.
A money supply that can be expanded or contracted by a central authority to meet the changing needs of the economy, preventing currency shortages during panics.
An institution, usually a central bank, that provides emergency liquidity (loans) to solvent banks facing a financial crisis.
The central banking system of the United States, established in 1913. It faced its first major test during the roaring twenties and great depression.
The governing body of the Federal Reserve System, located in Washington D.C., responsible for overseeing monetary policy.
The twelve regional banks that are part of the Federal Reserve System, designed to represent the diverse economic interests of the country.
The official paper currency of the United States, issued by the Federal Reserve.
Actions undertaken by a central bank to manipulate the money supply and credit conditions to stimulate or restrain economic activity.
A U.S. Congressman who was a key architect of the Federal Reserve Act of 1913.
A decade of significant economic growth and widespread social change in the 1920s, which also saw a massive speculative bubble in the stock market.
An economic situation where asset prices rise far beyond their intrinsic value, driven by irrational expectations.
The interest rate at which commercial banks can borrow money directly from the Federal Reserve; a key tool of monetary policy.
The most severe economic downturn in modern history, which began with the stock market crash of 1929 and lasted through the 1930s.
A significant decrease in the total amount of money in an economy, a key feature of the early years of the Great Depression.
Situations where a large number of depositors withdraw their funds simultaneously due to fear of bank insolvency.
The actions and policies of a central bank, whose efficacy was severely tested by the Great Depression. Friedman's work is a foundational text on its proper function during a crisis.
A Nobel Prize-winning economist whose work, particularly "A Monetary History of the United States," put forth a powerful critique of the Federal Reserve's role in the Great Depression.
The total amount of money in circulation in an economy. Its 33% contraction from 1929-1933 is a key statistic in the monetarist argument.
A monetary system where a country's currency is directly linked to a fixed amount of gold, which constrained the Fed's ability to expand the money supply.
The buying and selling of government securities by a central bank to inject or remove money from the financial system.
The interest rate at which commercial banks can borrow money directly from the Federal Reserve.
The Chairman of the Federal Reserve Board during the Great Depression who oversaw the controversial decision to raise reserve requirements in 1936-37.
A general increase in prices and a fall in the purchasing value of money, which the Fed feared in the mid-1930s.
The fraction of deposits that banks are legally required to hold in reserve and not lend out. Increasing them tightens credit.
Expenditures by the government. Cuts in spending in 1937 contributed to the recession.
A sharp economic downturn that occurred within the broader Great Depression, interrupting the recovery.
Actions taken by a central bank like the Federal Reserve to influence money and credit conditions.
Actions taken by the government, primarily through spending and taxation, to influence the economy.
A prolonged period in which investment prices fall, typically defined as a decline of 20% or more from a recent peak.
The desire and ability of consumers to purchase goods and services.
A lack of confidence in the future direction of the economy, which often leads to lower investment and stock prices.
An economy focused on the production of civilian goods and services, as opposed to wartime production.
A significant but relatively short-lived decline in asset prices.
A U.S. federal agency during WWII that controlled prices and rents to combat inflation.
The first administrator of the Office of Price Administration (OPA), who oversaw America's wartime price controls.
A prolonged period in which investment prices rise, accompanied by widespread positive sentiment.
A sudden and unexpected event that causes significant volatility in financial markets.
The state in which an asset's price is considered to be higher than its intrinsic or fundamental value.
The overall attitude of investors toward a particular security or financial market.
The 35th President of the United States, whose public confrontation with the steel industry is considered the key trigger for the 1962 market slide.
The Chairman of the Federal Reserve during the "Kennedy Slide," who was pursuing a moderately tight monetary policy at the time.
An economic condition of slow growth and high unemployment (stagnation) combined with rising prices (inflation).
A decision by Arab oil-producing nations to stop exporting oil to the United States and other western countries, which caused a massive spike in energy prices.
A global monetary system established after WWII that pegged major currencies to the U.S. dollar, which was pegged to gold. Its collapse in the early 1970s created currency instability.
The Chairman of the Federal Reserve during the 1973-1974 crash who struggled to navigate the challenges of stagflation.
The Chairman of the Federal Reserve from 1979 to 1987, who is credited with ending the stagflation era.
The aggressive anti-inflation policy enacted by Paul Volcker, which involved dramatically raising interest rates to break the cycle of high inflation, at the cost of a severe recession.
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