The Financial Crisis and Federal Reserve Policy

"Explores crucial questions surrounding the Great Crisis of 2007-09, its relationship to other financial crises, and the role of the Federal Reserve in the crisis and recovery." - Journal of Economic Literature

'I've read many books on the Financial Crisis. Lloyd Thomas's book, quite simply, is the best. It doesn't simply describe what happened. It explains what happened. And it explains what needs to be done to prevent it from happening again.' - Laurence Seidman, Chaplin Tyler Professor of Economics, University of Delaware, USA

'Thomas provides a comprehensive and dispassionate analysis of the Great Crisis of 2007-2009. Exceptionally well written and researched, the author provides insights into the most severe economic challenge in the U.S. and much of the rest of the world in 75 years. The book has much to offer to professional economists, financial experts, and policy makers, as well as the general citizens who were affected by the severe downturn, housing market collapse, and financial system's near meltdown. The prominent and effective role of the Federal Reserve is the unappreciated story in the Great Crisis and is in sharp contrast to the Fed's performance in the Great Depression of the 1930's. This book is destined to be one of the most thoughtful, independent, and insightful analyses of the Great Crisis. ' - Bruce Jaffee, Professor of Business Economics and Public Policy and Executive Director, Institute for International Business, Indiana University, USA

"Timely, informative, insightful, beautifully written, and readable both by informed professionals and economists. Tightly organized and very interesting treatment of the Federal Reserve's role in the current economic crisis with comparative historical background on the Fed's behavior during the Great Depression. A wonderful book." - Michael J. Greenwood, Professor of Economics, University of Colorado at Boulder, USA

"Thomas has an amazing grasp of the history of the Great Recession, and a complete understanding of the key institutions involved. The Financial Crisis and Federal Reserve Policy weaves that understanding into a thorough analysis of both the origins of the crisis and the policy response. Written with exceptional clarity, this book is easily accessible to anyone who wants a better understanding of the crisis, but the theory and evidence are so complete that it will be a valuable reference for economists as well. Thomas has the historian's eye for detail and the economist's gift of analysis. He fits the pieces of this amazing event together - the data, the history, the chronology, and most important, the explanation - with great skill and great clarity." - Alan Grant, Professor of Economics, Baker University, USA

About the Second Edition

"These new chapters make a tremendous addition to the book. To many, the real stories of the Great Recession were the protracted recovery and the unconventional and unprecedented policy response by the Federal Reserve. These chapters cover that material thoroughly, and present compelling evidence that Fed Chairman Ben Bernanke managed the crisis with great skill." - Alan Grant, Professor of Economics, Baker University, USA

"The second edition of Thomas' book is a substantial improvement on an outstanding first edition. This first-rate text provides a compendious discussion of the financial crisis and Federal Reserve policy in a way that is truly scintillating. Especially outstanding in the second edition is his careful analysis of the slow recovery following the Great Recession in Chapter Seven, the European sovereign debt crisis in Chapter Eight, and the unconventional monetary policy response to the recession in Chapter Twelve. It is to Thomas' credit that he has written a text, which by virtue of its depth and clarity will set the standard for the discussion of the financial crisis." - Bebonchu Atems, Assistant Professor of Economics, School of Business, Clarkson University, USA