Charles P. Kindleberger quotes
The explanation of this book is that the 1929 depression was so wide, so deep, and so long because the international economic system was rendered unstable by British inability and U. S. unwillingness to assume responsibility for stabilizing it by discharging five functions:(1) maintaining a relatively open market for distress goods;
(2) providing countercyclical, or at least stable, long term lending;
(3) policing a relatively stable system of exchange rates;
(4) ensuring the coordination of macroeconomic policies;
(5) acting as a lender of last resort by discounting or otherwise providing liquidity in financial crisis.
Charles P. Kindleberger
The monetary history of the last four hundred years has been replete with financial crises. The pattern was that investor optimism increased as economies expanded, the rate of growth of credit increased and economic growth accelerated, and an increasing number of individuals began to invest for short-term capital gains rather than for the returns associated with the productivity of the assets they were acquiring. The increase in the supply of credit and more buoyant economic outlook often led to economic booms as investment spending increased in response to the more optimistic outlook and the greater availability of credit, and as household spending increased as personal wealth surged.
Charles P. Kindleberger
The dilemma posed by a choice between rules and men largely begs the question. There are, to be sure, times when rules, constraints, commitments, contract or treaty provisions stand in the way and should be transcended because of force majeure, acts of God, some deus ex machina that makes clear that all bets are off. ...
If one relies on men of responsibility to make the right choice in crisis among conflicting rules, or to follow an altogether different course for which no precedent exists, there is a danger of creating new precedents and new rules, which may be applied mistakenly under different circumstances. ...
The alternative to rules-men, which of course includes women-begs another question. Men have different responsibilities, principles, understandings, interests.
Charles P. Kindleberger