In a battle for monetary policy supremacy.

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That said, the Fed’s actions in the recovery suggest that it has probably mitigated the worst of the recession’s effects. Indeed, the Federal Reserve made dramatic moves (blue) to maintain credit standards (green):”

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In a fabulous article at the Liberty Street Blog, Linda Goldberg explains succinctly how important globalized trade is to sustaining economies.

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World War I marks the onset of the second period—what economists Raghu Rajan and Luigi Zingales call “The Great Reversal of 1914 through 1939.” This period is characterized by financial collapse and the Great Depression. They forcefully argue that this episode shows that globalization is not an immutable economic force, and a backlash against it can be disastrous