@article {85611, title = {Shifting Mandates: The Federal Reserve{\textquoteright}s First Centennial}, journal = {American Economic Review}, volume = {103}, number = {3}, year = {2013}, note = {Copyright American Economic Review 2013. Posted by permission. }, pages = {48-54}, abstract = {The Federal Reserve{\textquoteright}s mandate has evolved considerably over the organization{\textquoteright}s hundred-year history. It was changed from an initial focus in 1913 on financial stability, to fiscal financing in World War II and its aftermath, to a strong anti-inflation focus from the late 1970s, and then back to greater emphasis on financial stability since the Great Contraction. Yet, as the Fed{\textquoteright}s mandate has expanded in recent years, its range of instruments has narrowed, partly based on a misguided belief in the inherent stability of financial markets. We argue for a return to multiple instruments, including a more active role for reserve requirements. }, url = {https://www.aeaweb.org/aer/data/may2013/P2013_4410_data.zip}, author = {Carmen M. Reinhart and Kenneth S. Rogoff} }