December, 2015

The Federal Reserve System's Overreach into Credit Allocation

  • Lawrence H. White

    Distinguished Senior Fellow, F. A. Hayek Program for Advanced Study in Philosophy, Politics and Economics
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Find the paper at journal.apee.org.

The Federal Reserve System’s attempts to direct the allocation of credit since 2007 have been overreaching, wasteful, morally hazardous, and fraught with serious governance (potential cronyism) problems. Accordingly, the Fed should remove itself, or be removed by Congress, from the formulation and implementation of credit-allocation policies.