An accord for Fed credit policy should supplement the monetary policy Accord of 1951 and should be based on three principles: (1) credit policy should not fund insolvent institutions, (2) credit policy should not fund expenditures that ought to get congressional authorization, and (3) Congress...

Monetary policy operating procedures have long beendebated within the Federal Reserve and amongmonetary economists at large. For instance, economists havedisagreed about whether a central bank should utilize bankreserves or the interest rate as the policy instrument. For thetime being at least,...