University
Distinguished Lecture
Behind
the Scenes on September 11:
How the Federal Reserve Made Sure that Cash Machines and Credit Cards Kept
Working
January
22, 2003
Interest rate changes get the headlines, but they aren't the focus of the
daily work of the 20,000 Federal Reserve employees. These people spend their
time making sure that the financial system works smoothly and that when we
want to buy things, it is straightforward to pay for them.
The financial system is our economic plumbing. And just like the plumbing
in our homes and offices, when it works nobody notices. But just like a water
main break, a financial crisis is something that everyone notices. The day-to-day
job of the people who work for the Federal Reserve is to keep our financial
plumbing working. They make sure that money can flow quickly and easily to
where people want it to go.
The terrorist attacks on September 11, 2001, created both human tragedy
and financial crisis. But the work of the people at the Federal Reserve
contained the financial fallout. In my lecture, I will explain what the
Federal Reserve did to ensure that if one of us went to the bank machine at
noon on September 11, 2001, cash still came out; and that our credit cards
still worked if we wanted to use them to buy groceries on the way home.
Powerpoint
Slides (3.8 Mb)
Streaming
Video (1 Hour)
Requires current
version of Real Player 8 Basic
The University
Distinguished Lecture Series was inaugurated in 1996 as one of the
University's highest honors for a senior faculty member. The lectureship is
awarded in recognition of outstanding academic achievement, particularly, but
not exclusively, in research, scholarship, or creative activity. The
President's and Provost's Advisory Committee reviews nominations and
recommends candidates to the President and Provost for final selection.
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