Kenneth D. Garbade
- Published in print:
- 2012
- Published Online:
- August 2013
- ISBN:
- 9780262016377
- eISBN:
- 9780262298674
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262016377.003.0021
- Subject:
- Economics and Finance, Econometrics
At the beginning of the Great Depression, there were three statutory restrictions on Treasury debt management actions: a limit of $10 billion on outstanding bills and certificates of indebtedness; a ...
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At the beginning of the Great Depression, there were three statutory restrictions on Treasury debt management actions: a limit of $10 billion on outstanding bills and certificates of indebtedness; a limit of $7.5 billion on outstanding notes; and the authority to issue no more than $20 billion of Treasury bonds. In contrast, by mid-1939 there was only a single statutory limit of $45 billion on total outstanding indebtedness. This chapter examines why Congress gradually moved away from controlling individual categories of Treasury debt to controlling aggregate indebtedness.Less
At the beginning of the Great Depression, there were three statutory restrictions on Treasury debt management actions: a limit of $10 billion on outstanding bills and certificates of indebtedness; a limit of $7.5 billion on outstanding notes; and the authority to issue no more than $20 billion of Treasury bonds. In contrast, by mid-1939 there was only a single statutory limit of $45 billion on total outstanding indebtedness. This chapter examines why Congress gradually moved away from controlling individual categories of Treasury debt to controlling aggregate indebtedness.
