financing requirements during World War II. Nonetheless, the Fed retained a policy tool in the form of reserve requirements, and … expected inflation. The inability of the Fed to maintain a credible commitment to low interest rates in the face of increased … government spending and rising inflation led to the Fed-Treasury Accord of March 1951. Following the Accord, the external …

This paper reviews the available evidence and previous research on potential effects of financial globalization, that … globalization materially increased the influence of external developments on domestic monetary conditions? And, has it reduced the …