ECO 2013 Lecture 20: Macroeconomic Lecture Notes 10-26-2016
Document Summary
The establishment of the federal reserve system (continued) Today, many economists are critical of the fed"s decisions in the early. 1930s, believing they made the great depression worse: in response to the great depression. In 1934, congress established the federal deposit insurance corporation (fdic) The fdic insures deposits in many banks, up to a limit (,000). This government guarantee has helped to limit bank panics. Bank runs are still possible; during the recession of 2007-2009, a few banks experienced runs from large depositors whose deposits exceed the. Fdic limit: in 1913, congress divided the country into 12 federal reserve districts, each of which provided services to banks in the district. But the real power of the fed lies in washington, dc, with the board of. Governors: in 2013, the chair of the board of governors was ben bernanke, now it is janet yellen.
