Regional President Speech

Seminar for Faculty Members and Central Banking Seminar, FRB of Dallas Advanced Students - Univ. of Texas April 24-26, 1957 V23/57 KRB - Objectives of Central Banking 3:00 - 4:15 p.m. 4/24/57 ALTERNATIVE OBJECTIVES AND RELATED PROGRAMS Conditions requiring Conditions requiring Objective or permitting an or permitting a Inherent Bias easing of credit tightening of credit 1. Stable price Declining prices Rising prices level 2. Full employment Less than full Jobs in excess of Expansive employment workers 3. Convertibility High and/or rising Low and/or declining Contractive primary reserves primary reserves 4. Productive Increase in monetary Decrease in monetary Chaincredit volume of output volume of output reaction 5. A fixed rate When savings are When savings are Chainof interest inadequate excessive reaction Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SOME RELEVANT ECONOMIC MAGNITUDES Index (19^7-^9=100) CONSUMER FRICKS 115 110 V. WHOLESALE PRICES 105 iii-ll-U III I I ill 11 I I 1 1 n 11 I h i m li I n » i n t n 1 11 tit 11 Li U Lll 11 111 I Li-1 ] 1952 1953 1951* 1955 1956 1957 Millions of Persons Billions $ QOID STOCK 21 M.U1.1LU I1 11.111.1 .LU 11 11 ILI. 11.1 LLLil.j.,1 111 .1 [ 1 1 IJlLLU 11 1952 1953 1951* 1955 1956 1957 Billions $ 1952 1953 195*+ 1955 1956 1957 DISCOUNT RATE F.R.B. - MEW YORK - TREASURY BILL RATE 1 1 1 1 1 1 1 1 1 1 1 1 1 n 11 1) u 1 111 111 I ill 11 11 I M I II U I i I 111 111 1 11 i m i I ill h Ml li 195? 1953 1954 1955 1956 1957 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis