The Credit Control Act of 1983: Hearing Before the Subcommittee on Economic Stabilization of the Committee on Banking, Finance, and Urban Affairs, House of Representatives, Ninety-eighth Congress, First Session, on H.R. 1742 ... June 16, 1983

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Page 81 - PROTECTIONISM before the SUBCOMMITTEE ON ECONOMIC STABILIZATION of the HOUSE COMMITTEE ON BANKING, FINANCE AND URBAN AFFAIRS for the CHAMBER OF COMMERCE OF THE UNITED STATES Frank L.
Page 76 - Economist the First National Bank of Chicago One First National Plaza Chicago, IL 60670 312-732-5117 Thomas D.
Page 95 - ... be provided under this Act to any group which maintains within its ranks any individual who has been found to engage in gross violations of internationally recognized human rights (as defined in section 502B(dXD of the Foreign Assistance Act of 1961). USE OF THE AFRICAN EMERGENCY RESERVE SEC. 210. Whenever the President determines that such action is necessary or appropriate to meet food shortages in southern Africa, the President is authorized to utilize the existing, authorized, and funded...
Page 59 - Texas, and a member of the Economic Advisory Committee of the American Bankers Association. Our Association's membership includes more than 90% of the nation's full service banks.
Page 81 - Whenever the President determines that such action (imposition of credit controls) is necessary or appropriate for the purpose of preventing or controlling inflation generated by the extension of credit in an excessive volume, the President may authorize the Board (Federal Reserve) to regulate and control any or all extensions of credit.
Page 64 - Company and a member of the Economic Advisory Committee of the American Bankers Association. The membership of our Association includes more than 13,100 full service banks — over 90 percent of the nation's total.
Page 67 - Moreover, when credit is redirected to other channels in response to controls, less efficient intermediaries may assume a larger role. Commercial banks for example, are efficient intermediaries in gathering funds and making the credit judgments involved in lending those funds to borrowers. Credit controls that result in a significantly greater volume of lending outside the banking system, through the comnercial paper market for example, could entail a deterioration of credit standards and quality.
Page 68 - Because of the difficulty of reaching various segments of the money and capital markets, credit controls would likely be concentrated on bank credit. Not only would that result in credit moving into other channels, as we have argued previously, but in our opinion, bank credit is not an appropriate target of monetary policy. The monetary base and certain measures of the money supply are more appropriate targets, because they relate to total economic activity in a more logical and statistically reliable...
Page 35 - In addition to credit policy, the authorities often used window guidance to attempt to curtail bank loans directly. Although window guidance was sometimes heralded as a major policy instrument, it was actually only a supplementary tool. The Bank of Japan itself has said: 'Window guidance is a supplemental tool to general monetary policy tools such as discount rate changes, rather than an independent weapon of monetary control.
Page 7 - ... for 1 year from now which would force Congress to take a look at it, perhaps curtail some of those controls, if not take them off? What is your feeling on that? Mr. VOLCKER. My personal feeling about that act is that it is, indeed, a very sweeping piece of legislation with rather broad criteria for its use, to put it kindly. It is not really appropriate to have that sweeping grant of power, in this case to the President and the Federal Reserve combined. You have a protection in a sense that both...

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