chapter  7
18 Pages

The Banking Reform Agenda: A Federal Monetary Authority and Credit Allocation

At the end of 1933, New Deal policies had stopped bank runs through the creation of federal deposit insurance and legislation to separate investment and commercial banking. Despite an easing of the banking situation, the fiscal policies of the Roosevelt administration were not expansionary in 1933, and the economy continued to falter. Gross National Product was 30 percent below its 1929 level, and nearly one quarter of the work force remained unemployed.