Why You Should Love The Fed In One Simple Chart

Buried in the Dallas Fed’s denouncement of Too Big To Fail is a simple argument for the Federal Reserve.

Before the creation of the Fed, America used to spend 48 per cent of the time in recession.

Since then, America has spent only 21 per cent of the time in recession.

There’s converse problem when the central bank is too aggressive, promoting bubbles and leading to crashes, but that’s a matter of policy, not voting for Ron Paul and ending the Fed.

chart

More highlights from the paper here >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.