Financial Deregulation and Monetary Control: Historical Perspective and Impact of the 1980 Act

The Depository Institution Deregulation and Monetary Control Act of 1980 has been the most comprehensive attempt at financial and monetary reform since the 1930s. Based on the authors' experience as visting scholars in the Division of Banking Research and Economic Policy at the Office of the Comptroller in 1980, this study explores the act's historical antecedents, its purpose, and its potential effects on the financial system and the conduct of monetary policy during the 1980s. The authors examine the strengths and weaknesses of this important first step in the series of reforms required to improve monetary control and create a more flexible, efficient, and competitive financial system.