The Alchemists: Three Central Bankers and a World on Fire
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Smith, George Ross, 45
Smith, Michelle, 5, 193
Sócrates, José, 296
Soini, Timo, 297
Solow, Robert, 65, 116
Soros, George, 72–74
South Korea, Group of 20 meeting (2010), 257, 273–74
Spain financial crisis, 317–23
ECB bond buying program, 287, 320–21
fiscal reforms, 353
housing price increase (2005), 100–101
Speer, David, 261
Stagflation, Great Britain (2010–2011), 251–53, 334
Stamp, Josiah, 388
Stark, Jürgen
ECB bond buying opposition, 220–21, 229, 320–21
economic orientation, 300
and Greek crisis, 209–10
resignation of, 322–23
Stein, Herbert, 62
Stein, Jeremy, 385
Steinbrück, Peer, 159
Stockholms Banco, 17–24
collapse (1668), 17–18, 23
innovations/failures of, 18–23
lessons learned, 23–24
Stock market. See Financial markets
Stockton, David, 106, 265
Strauss-Kahn, Dominique, 206, 219, 230, 286, 308
Strong, Benjamin, 41, 56
Summers, Larry, 94, 181–82
Super Mario Brothers. See Draghi, Mario; Monti, Mario
Susman, Louis, 243, 250–51
Sveriges Riksbank, 24
Sweden
central bank, first, 24
Stockholms Banco innovations/failure, 17–24
Sveriges Riksbank as central bank, 24
Swiss National Bank, 130, 153
eurozone interventions by, 349–50
Switzerland, central bank. See Swiss National Bank
Székely, István, 284
TARP (Troubled Asset Relief Program), 156–57
Tarullo, Daniel, 179
Taxes, U.S., and political unity, 78
Taylor, John, 97
Teal Book, 262, 330
Terkel, Studs, 61
Term Auction Facility (TAF), 131–32
Thatcher, Margaret, 72
Thomsen, Poul, 285, 309
Tipping point theory, 267–68
Tobin, James, 70
Treasury securities
Fed large-scale bond purchase. See Quantitative easing
liquidity of, 236
Tremonti, Giulio, 319
Trichet, Jean-Claude. See also European Central Bank (ECB) remedies
background information, 12, 112–15
beginning crisis, view of, 7, 128, 135, 137
BNP Paribas crisis as first, 1–3
on coordination of remedies, 159–61
economic orientation of, 115, 287
Eurogroup meeting protest, 306–7
Franco-German Declaration criticism by, 290–92
-Geithner relationship, 219, 317
Governing Council meetings, role at, 136–37
on Greek financial crisis, 204, 206–8, 211–12, 218–19, 222–23, 287
on Italy/Spain crises, 317–23
at Jackson Hole conference, 97
on Lehman failure, 143
at Maastricht negotiations, 77, 114
nomination as ECB president, 81–82
personal traits, 114–15
poor decisions of, 135–37, 212–13, 303–5
as “president” of Europe, 322
retirement gala, 324–26
-Sarkozy dispute, 324
successor to. See Draghi, Mario
on Term Auction Facility (TAF), 131–32
True Finns, 297
Trust Company of America, 41
Tucker, Paul, 241, 388
Twisting the yield curve, 331–32
Tyrie, Andrew, 250
Ueda, Kazuo, 89, 91–92
Ullstein, Leopold, 52
Unemployment
Great Britain (2009–2011), 236, 248, 251, 334
Great Depression era, 57, 58, 60
during Greenspan tenure, 94, 99
during inflation of 1970s, 65
Ireland (2010), 284
level in 2009, 188
U.S. weak jobs growth, 259, 268–69, 328, 378
United Copper, 40–41
United States
annual growth needs, 267
central bank. See Federal Reserve
federal credit rating downgraded, 317
financial crises. See U.S. financial crises; U.S. financial crisis (2007–2012)
history of banking in. See U.S. banking history
U.S. banking history, 35–46
Aldrich-Vreeland Act (1908), 43
antibank sentiments, 37–38, 43–46
Bank of the United States (1791), 37
Federal Deposit Insurance Corporation, 77–78
Federal Reserve Act (1913), 45–46
Federal Reserve System, 44–45
First Name Club efforts (1910), 35–36, 43–44
Free Banking Era, 39
National Banking Act (1863), 39
national currency, nonexistence of, 39
National Monetary Commission (1908), 43
National Reserve Association, 43
Second Bank of the United States (1816), 37–39
U.S. financial crises
bank failures (1870s), 39–40
bank panics (1837,1839,1857), 39
depression (1929–). See Great Depression
inflation (1971–1979), 62–71
Panic of 1907, 40–43
and September 11 attacks, 99, 130
of 2007–2012. See U.S. financial crisis (2007-2012)
U.S. financial crisis (2007–2012)
AIG collapse, 145–47
Bear Stearns collapse, 132–33
and Chinese economy, 364–66
commodity price increases, 134–35, 137
federal debt (2009), 236
financial reform following. See U.S. financial reform
home price increases by 2005, 99
household debt increase, 100
housing bubble, central bankers fears (2005), 104–8
Lehman Brothers collapse, 139–43
money market funds, dangers to, 148–49
and mortgage-backed securities, 101–3, 129
and mortgage products, new, 99–100
negative economic indicators (2010–2011), 259–61, 263–65, 267–70, 328
recession, official end (2009), 182
remedies. See Bernanke, Ben; Federal Reserve remedies
stock market drops during, 145, 165, 218–19
TARP, 156–57
time line for, xi–xvii
U.S. financial reform
Audit the Fed proposal, 175–76, 185–86, 193–94, 197
and community banks, 178–80, 186–88, 192–93, 194–96
consumer protection, 185
Dodd-Frank Act, 185–88, 194–200
Fed as victor in, 199–200
Fed bashing as tactic, 172–81
Fed lobbying, 176–77, 181–82, 187–88, 192–93, 195–96
Fed opponents, 170–76, 185–86, 195–96, 198–99
Fed priorities, 178, 193–94
Fed supporters, 178–81, 185, 187–88
Fed transparency issue, 175–76, 197–98
original proposals, 185–88, 195–96
Paul-Grayson amendment, 186
Venizelos, Evangelos, 310, 314
Versailles, Treaty of, on German reparations, 49–50
Volcker, Paul
b
ackground information, 67–68
ends inflation (1970s), 67–71
on investment bank bailouts, 134
at Jackson Hole conference, 95–96
lasting achievement of, 71
during Nixon administration, 63
protests about policies of, 70–71, 96
Wallich, Henry, 68
Wall Street crash (1929), 56–58
Black Thursday, Dow drop on, 54
impact in Europe, 57–61
Warburg, Paul, 35
Wars, central bank financing of, 37, 39
Warsh, Kevin, 111, 133, 154, 193
QE2, objection to, 258, 264, 265–66, 276
role at Fed, 4, 265
Washington, George, 37
Watt, Mel, 185
Weale, Martin, 334
Weber, Axl
on bond buying proposal, 220–22
ECB bond buying opposition, 229–32, 351
ECB presidency loss, 299–300
resignation of, 298–99
Weidmann, Jens
as Bundesbank head, 318, 323
Draghi policies, opposition to, 381–84
economic orientation of, 323
Weinberger, Caspar, 62–63
Wellink, Nout, 229
WikiLeaks, 250
Williams, John, 385
Wilson, Woodrow, 44–45
Witmacher, Hans, 19. See also Palmstruch, Johan
Wolfensohn, James, 118
Wolin, Neal, 172–73
Woodford, Michael, 378–79, 386, 390
Woodstock, Vermont conference (1999), 84–85, 91–92
Woodward, Bob, 94
World War I
financing by Germany, 48–50
German hyperinflation after, 50–53
German reparations after, 49–50
World War II
economic unity, postwar, 74–75
and European economic crisis, 11
Nazi rise, reasons for, 11, 50–53
Wu Jinglian, 368
Wu Xiaoling, 366
Xi Jinping, 363
Yellen, Janet, 96, 257, 264, 269, 275, 385
Yom Kippur War (1973), 66
Young, Roy, 56
Zaitech, 85–86
Zapatero, José Luis, 320, 342
Zero-interest rate, Japan (1990s), 87–88, 90–92
Zhou Xiaochuan, 361–76
background information, 367–69, 372–73
on Chinese versus Western economic policy, 361–62
PBOC reforms/programs, 369–73, 375–76
role/expectations of, 363, 374
Zhu Guangyao, 257