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Monetary Policy and Capital Formation - Review

The year 1776 gave birth not only to a great nation but also to a great book which shaped our science. In his Wealth of Nations, Adam Smith made growth in income the central explanandum of his inquiry and identified capital formation as the prime mover of growth in income. It is most fitting, therefore, that the subject matter of this conference in this bicentennial year of the Wealth of Nations is capital formation.

research.stlouisfed.org/publications/review/1977/06/01/monetary-policy-and-capital-formation

Effects of Interest on Demand Deposits: Implications of Compensating Balances - Review

Legislation is being considered which would allow depository financial institutions throughout the nation to offer to households interest-paying checking accounts, more popularly known as NOW (Negotiable Order of Withdrawal) accounts. Bankers, in general, are concerned about the effects on earnings of such a regulatory change. Several studies of NOW accounts, however, suggest that this concern may be unjustified, as only small earnings effects have been detected in areas where NOW accounts are currently permitted.

research.stlouisfed.org/.../

Free Trade: A Major Factor in U.S. Farm Income - Review

Exports of U.S. farm commodities totaled $23 billion in 1976 and are expected to exceed that amount this year. Exports in the past year accounted for almost 25 percent of tile dollar value of all farm commodity sales, and the 100 million acres of land utilized in producing this volume of exports represented 30 percent of the total acreage harvested. Thus, exports play a significant role in determining the nation’s farm income.

research.stlouisfed.org/.../review/1977/03/01/free-trade-a-major-factor-in-u-s-farm-income

The Early 1960s: A Guide to the Late 1970s - Review

Lessons can be learned from a study of the past. Future mistakes can be avoided, using the information gained through analysis of the policy actions that were taken and evaluating the resulting economic performance. Similarly, for these periods when economic performance was successful, an analysis of the contributing forces provides some positive guidance to policymakers. From an economic growth and stabilization viewpoint, the four-year period from 1961 to 1965 was one of the most successful in our history.

research.stlouisfed.org/.../review/1977/10/01/the-early-1960s-a-guide-to-the-late-1970s

Government Policy and Capital Formation - Review

There is nothing that cripples business investment like a recession. From the beginning of 1974 to the third quarter of 1975, while unemployment rose from 5.2 percent to between 8.5 and 9 percent, real nonresidential business fixed investments fell 17.5 percent. While gross national product in constant dollars declined 6.6 percent from the fourth quarter of 1973 to the first quarter of 1975, the total of fixed investment, including residential as well as nonresidential structures, dropped 23.6 percent from the first quarter of 1973 to the second quarter of 1975.

research.stlouisfed.org/.../publications/review/1977/06/01/government-policy-and-capital-formation