Despite a somewhat conspiratorial-sounding title, William Greider’s Secrets of the Temple is an excellent piece of investigative journalism, and a sober analysis of the Federal Reserve system and the American economy in the 1980’s. The book covers Paul Volcker’s tenure as chairman of the Federal Reserve, from 1979 to 1987. Through Volcker’s actions as Fed chairman, Greider shows us the power the Federal Reserve has to impact the American economy. This story is interesting enough, but Greider also uses the events of this period to raise questions that are still relevant today. Is it wise to let a team of unelected bureaucrats craft monetary policy? Is there any better alternative?
Greider again and again makes the point that the money question is a political question. How the Federal Reserve manages the money supply has profound political consequences. The Fed’s quasi-independent status allows both citizens and elected officials to ignore the issue, but perhaps we do so at our own peril.
Anyway, a great book that I would encourage everyone to read. If you elect not to read the book, enjoy the summary. It’s only 46 pages… .
