Allan H. Meltzer, professor of economics and author of A History of the Federal Reserve, Volume 1: 1913-1951, wrote an interesting op-ed piece for today’s Wall Street Journal that warns policymakers against increasing the Federal Reserve’s supervision of investment banks. In his article, Meltzer argues that the Federal Reserve’s increased involvement with private investment banking firms could lead to greater assurance of government bailouts, and encourage more of the risky lending practices that have led to the highly publicized bank closures in recent months.
Read Meltzer’s article on the WSJ website, or find out more about Meltzer’s book, A History of the Federal Reserve, Volume 1: 1913-1951. Volume Two is currently slated for publication in the Fall of 2009.