The Myth of Independence - by Sarah Binder & Mark Spindel

Book Synopsis

An in-depth look at how politics and economics shape the relationship between Congress and the Federal Reserve

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's 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's role in steering this evolution, Sarah Binder and Mark Spindel explore the Fed's past, present, and future and challenge the myth of its independence.

From the Back Cover

"This book examines the interrelationship between Congress and the Federal Reserve over time, analyzing the congressional politics of the Federal Reserve's founding in 1913 and its subsequent institutional development through the aftermath of the 2008 financial crisis. Binder and Spindel incorporate a wealth of systematic data into their historical narrative."--Frances E. Lee, University of Maryland

"With persuasive evidence, The Myth of Independence looks at how the structure and behavior of the Fed is shaped in fundamental ways by Congress. This book is an important and interesting contribution to the study of the American political economy."--Nolan McCarty, Princeton University

Review Quotes

"Finalist for the 31st D.B. Hardeman Prize, LBJ Foundation"

"One of Project Syndicate's Best Reads in 2017 (chosen by Koichi Hamada)"

"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"

About the Author

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-based hedge fund he started in 2007.