Born out of crisis a century ago, the Federal Reserve has become the most powerful macroeconomic policymaker and financial regulator in the world. The Myth of Independence marshals archival sources, interviews, and statistical analyses to trace the Fed鈥檚 transformation from a weak, secretive, and decentralized institution in 1913 to a remarkably transparent central bank a century later. Offering a unique account of Congress鈥檚 role in steering this evolution, Sarah Binder and Mark Spindel explore the Fed鈥檚 past, present, and future and challenge the myth of its independence.
Awards and Recognition
- Finalist for the 31st D.B. Hardeman Prize, LBJ Foundation
- Winner of the 2018 Gladys M. Kammerer Award, American Political Science Association
- Winner of the 2018 Richard F. Fenno, Jr. Prize, Legislative Studies Section of the American Political Science Association
- One of Project Syndicate鈥檚 Best Reads in 2017 (chosen by Koichi Hamada)
Sarah Binder is professor of political science at George Washington University and senior fellow at the Brookings Institution. Her books include Advice and Dissent and Stalemate. Mark Spindel has spent his entire career in investment management at such organizations as Salomon Brothers, the World Bank, and Potomac River Capital, a Washington DC鈥揵ased hedge fund he started in 2007.
鈥淓ven for readers who get through the day without thinking about monetary policy, Ms. Binder and Mr. Spindel offer compelling insights. . . . [An] impressively researched and often riveting study.鈥濃�擱oger Lowenstein, Wall Street Journal
鈥淚n this elegant and accessible book, Binder and Spindel shed new light on this tension between economics and politics. Their conclusion, that the Fed鈥檚 independence is at best fragile and at worst illusory, amounts to a fundamental challenge to conventional thinking about monetary policy in the United States.鈥濃�擝arry Eichengreen, University of California, Berkeley
鈥淎 fascinating account of the way political forces in Congress have shaped the Federal Reserve at critical junctures in its history. Highly original and timely, this is a must-read for anyone who wants to understand the political pressures that the Fed will face in coming years.鈥濃�擫iaquat Ahamed, author of the Pulitzer Prize-winning Lords of Finance
鈥淭he unique blend of historical and political analysis in The Myth of Independence makes this an important book. No matter how much you already know about the Federal Reserve, you'll learn more in these pages.鈥濃�擜lan Blinder, author of After the Music Stopped
