what caused the great depression to linger?
The 1930s has become the sole object lesson for today’s monetary policy. Over the past 12 months, the Federal Reserve has increased the monetary base (bank reserves plus currency in circulation) by well over 100%. While currency in circulation has grown slightly, there’s been an impressive 17-fold increase in bank reserves. The federal-funds target rate now stands at an all-time low range of zero to 25 basis points, with the 91-day Treasury bill yield equally low. All this has been done to avoid a liquidity crisis and a repeat of the mistakes that led to the Great Depression. Photo: http://s.wsj.net/public/resources/images/ED-AK212_Laffer_G_20090921160312.jpg Even with this huge increase in the monetary base, Fed Chairman Ben Bernanke has reiterated his goal not to repeat the mistakes made back in the 1930s by tightening credit too soon, which he says would send the economy back i
Township merchants who attended a forum about the effects of the lingering recession on residents and business owners say they are hopeful about the future. Advertisement “Is the Recession Over?” was held last week at the Princeton Elks Lodge and is the third such forum since 2008 hosted by the Economic Development Commission. EDC Chairman Walter Geslak said the forum’s purpose was to give local merchants some insight into current economic conditions and provide available government resources. Key speakers included Dana Saporta, an economist at New York-based Dresdner Kleinwort and Paul Ceppi, the business development officer for the New Jersey Economic Development Authority. Forum attendees included Mayor Louise Wilson and Committeewoman Kacey Dyer, who also is the liaison to the Economic Development Commission, as well as commission members and about 50 township business people. “I think it’s good the EDC has something like this,” said David R. Cuddeback, branch manager at Lincoln Fi
