After the Accord
A History of Federal Reserve Open Market Operations, the US Government Securities Market, and Treasury Debt Management from 1951 to 1979

A contribution to the history of the institutional evolution of the market that finances the US government in war and peace.

Kenneth D. Garbade (Author)

9781108839891, Cambridge University Press

Hardback, published 4 February 2021

388 pages
23.6 x 15.8 x 3.7 cm, 0.997 kg

'The relationship between Treasury debt management and Fed operations was thrust into the spotlight by the Global Financial crisis a decade ago, and remains there today due to the response to the coronavirus pandemic. However, that relationship has a long history. The Fed may enjoy a degree of independence at the policy level, but there is a natural interdependence between the Fed and Treasury at the operational level. Drawing on his unrivalled knowledge of the two institutions, Kenneth Garbade traces the history of that interdependence over a 30-year period in which the modern foundations of debt management and open market operations took shape.' Lou Crandall, Chief Economist, Wrightson ICAP

In this book Garbade, a former analyst at a primary dealer and researcher at the Federal Reserve Bank of New York, traces the evolution of open market operations, Treasury debt management, and the microstructure of the US government securities markets following the 1951 Treasury-Federal Reserve. This volume examines how these operations evolved, responding both to external forces and to one another. Utilising a vast scope of primary material, the work provides insight into how officials fashioned the instruments, facilities, and procedures needed to advance their policy objectives in light of their novel freedoms and responsibilities. Students and scholars of macroeconomics, financial regulation, and the history of central banking and the Federal Reserve will find this volume a welcome addition to Garbade's earlier studies of Treasury debt operations during World War I, the 1920s, and the Great Depression and since 1983.

Foreword. The many varieties of dealer
1. Introduction
Part I. The Sytem and the Market in the 1940s: 2. The government securities market
3. Reserves, reserve requirements, and reserves management
4. The institutional framework of open market operations
Part II. The Accord and its Aftermath: 5. The accord
6. Taking stock
7. New directions
8. Challenging the new restrictions
9. An additional limitation on the conduct of open market operations
Part III. The New Regime: 10. Monetary policy in 1954
11. Policy instruments for reserves management
12. Monetary policy in 1955
13. Pragmatism in the accommodation of Treasury offerings
14. 1956 and 1957
Part IV. Summer 1958 and its Consequences: 15. The summer 1958 Treasury financings
16. Innovations in Treasury debt management
17. The Treasury-Federal reserve stuy of the government securities market
Part V. The End of Bills Preferably: 18. The 1958-1960 gold drain
19. Operation twist
Part VI. The Sixties: 20. Treasury debt management in the 1960s
21. Monetary policy in the 1960s
22. Repurchase agreements in the 1960s
Part VII. Updating Market Infrastructures – The Joint Study: 23. The association of primary dealers
24. Dealer finance
25. The government securities clearing arrangement
26. Securities lending
27. The book-entry system, Part I
Part VIII. The Seventies: 28. Treasury debt management in the 1970s
29. Monetary policy in the 1970s
30. Open market operations in the 1970s
Part IX. Infrastructure in the Seventies: 31. The secondary market in the 1970s
32. The book-entry system, Part II
33. Coda
34. After 1979.

Subject Areas: Economic history [KCZ], Economic systems & structures [KCS], Political economy [KCP], Monetary economics [KCBM], Macroeconomics [KCB]