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In 1878, President Rutherford B. Hayes must decide whether to sign the Bland-Allison Act and commit the United States to minting silver coins and thus return to a bimetal standard of currency. At issue is whether to grow the nation's money supply to sustain its galloping rate of economic development, or to constrain the money supply growth to enable the country to return to the international gold standard at the pre-Civil War parity to the British pound. National sentiment immediately after the war had been on the side of currency deflation, but the Panic of 1873 marked a turn in sentiment toward inflation. These cases focus on how and why that turn occurred, and its consequences.

Supplement to case UV7520. The A case describes the views of the two leading candidates for US President, William Jennings Bryan and William McKinley, along with those of three other figures: J. P. Morgan, Mary Elizabeth Lease, and Eugene Debs. The task for the student is to assess the role of money and financial crises in the evolving political landscape-these five people reflect policy positions across the political spectrum. The main controversy in the case is whether only gold, or both gold and silver, should back the dollar, an issue that has been simmering for about a quarter-century and that is resolved in the election of 1896. The B case serves as an epilogue, describing the results of the election of 1896 and its effects on US financial policy, as well as the later history of the Populist Party and the main figures in the case.

Student spreadsheet for case UV7520.

Set in November 1896, the case describes the views of the two leading candidates for US president, William Jennings Bryan and William McKinley, along with those of three other figures: J. P. Morgan, Mary Elizabeth Lease, and Eugene Debs. The task for the student is to assess the role of money and financial crises in the evolving political landscape-these five people reflect policy positions across the political spectrum. The main controversy in the case is whether only gold, or both gold and silver, should back the dollar, an issue that has been simmering for about a quarter-century and that is resolved in the election of 1896.

This note shapes a framework of competing policy priorities for governments in responding to a financial crisis: rescue, relief, recovery, and reform. The dominant considerations are where, when, how, and why governments should choose the order of these policy priorities. The second part of the note highlights six hurdles to policy making: ideologies, interests, incentives, institutions, innovations, and infrastructure.

This note reviews seven recurrent factors in financial crises (runnable debt, rising leverage, financial innovation, complexity, contagion, cognitive bias, incompetence, and ethical violations) and some 17 responses aimed at preventing or mitigating crises.

"In August 1971, President Richard Nixon had to decide how to respond to a growing "run" on the US dollar. Declining confidence in the dollar had led some national trading partners to redeem dollars for gold at the US Treasury's gold window. In the Bretton Woods system, the US dollar was the world's reserve currency. To supply sufficient money to accommodate growth in the global economy, the United States would inevitably run deficits in its balance of payments-which would ultimately force it to devalue its currency. The Bretton Woods system seemed engineered to fail. Nixon's two dominant policy alternatives were (a) do nothing; and (b) devalue the dollar by abandoning the commitment under the Bretton Woods Agreement to convert dollars into gold at $35/ounce. Students must assess the situation and recommend a course of action. The A case describes the Bretton Woods system, the run on the dollar, and Nixon's policy dilemma. The B case gives the text of Nixon's 1971 address outlining his New Economic Policy. The A and B abridged case shortens the total presentation by eliminating some of the quoted material; the student task in this case is to analyze Nixon's decision and decide on next steps. The C case presents a brief epilogue.

In August 1971, President Richard Nixon had to decide how to respond to a growing "run" on the US dollar. Declining confidence in the dollar had led some national trading partners to redeem dollars for gold at the US Treasury's gold window. In the Bretton Woods system, the US dollar was the world's reserve currency. To supply sufficient money to accommodate growth in the global economy, the United States would inevitably run deficits in its balance of payments-which would ultimately force it to devalue its currency. The Bretton Woods system seemed engineered to fail. Nixon's two dominant policy alternatives were (a) do nothing; and (b) devalue the dollar by abandoning the commitment under the Bretton Woods Agreement to convert dollars into gold at $35/ounce. Students must assess the situation and recommend a course of action. The A case describes the Bretton Woods system, the run on the dollar, and Nixon's policy dilemma. The B case gives the text of Nixon's 1971 address outlining his New Economic Policy. The A and B abridged case shortens the total presentation by eliminating some of the quoted material; the student task in this case is to analyze Nixon's decision and decide on next steps. The C case presents a brief epilogue.

In August 1971, President Richard Nixon had to decide how to respond to a growing "run" on the US dollar. Declining confidence in the dollar had led some national trading partners to redeem dollars for gold at the US Treasury's gold window. In the Bretton Woods system, the US dollar was the world's reserve currency. To supply sufficient money to accommodate growth in the global economy, the United States would inevitably run deficits in its balance of payments-which would ultimately force it to devalue its currency. The Bretton Woods system seemed engineered to fail. Nixon's two dominant policy alternatives were (a) do nothing; and (b) devalue the dollar by abandoning the commitment under the Bretton Woods Agreement to convert dollars into gold at $35/ounce. Students must assess the situation and recommend a course of action. The A case describes the Bretton Woods system, the run on the dollar, and Nixon's policy dilemma. The B case gives the text of Nixon's 1971 address outlining his New Economic Policy. The A and B abridged case shortens the total presentation by eliminating some of the quoted material; the student task in this case is to analyze Nixon's decision and decide on next steps. The C case presents a brief epilogue.

In August 1971, President Richard Nixon had to decide how to respond to a growing "run" on the US dollar. Declining confidence in the dollar had led some national trading partners to redeem dollars for gold at the US Treasury's gold window. In the Bretton Woods system, the US dollar was the world's reserve currency. To supply sufficient money to accommodate growth in the global economy, the United States would inevitably run deficits in its balance of payments-which would ultimately force it to devalue its currency. The Bretton Woods system seemed engineered to fail. Nixon's two dominant policy alternatives were (a) do nothing; and (b) devalue the dollar by abandoning the commitment under the Bretton Woods Agreement to convert dollars into gold at $35/ounce. Students must assess the situation and recommend a course of action. The A case describes the Bretton Woods system, the run on the dollar, and Nixon's policy dilemma. The B case gives the text of Nixon's 1971 address outlining his New Economic Policy. The A and B abridged case shortens the total presentation by eliminating some of the quoted material; the student task in this case is to analyze Nixon's decision and decide on next steps. The C case presents a brief epilogue.

Set in 1870, the B case describes Chief Justice Samuel P. Chase's opinion in Hepburn v. Griswold, which challenged the constitutionality of a national fiat currency. The B case also discusses reactions to the ruling and subsequent court decisions.

Spreadsheet supplement for case UV7502.

Set in 1870, the case describes the situation of Supreme Court Chief Justice Salmon P. Chase, who must render an opinion in Hepburn v. Griswold, which challenges the constitutionality of the creation of a national fiat currency, so-called greenbacks. In 1862, Chase was Secretary of the Treasury in Abraham Lincoln's administration and reluctantly endorsed creating the greenbacks. Now, eight years later, he still harbors misgivings. The task for the student in this case is to recommend a decision. The larger consideration is to assess the massive pivot in US government financial policy that occurred in the 1860s.

In June 1788, James Madison prepared to attend a convention in Virginia to consider ratification of the proposed Constitution for the United States. The recent depression (1784-87) had triggered a major civic reaction over the weaknesses of the Articles of Confederation and inflamed differences among various groups in the country. As an architect of the new Constitution, Madison needed to prepare to defend it in the ratification convention. Vigorous opponents sought to prevent ratification and the loss of states' power to a central government. How should Madison make his case? Madison's dilemma occurs in the midst of a dramatic regime shift in American politics. The social reaction to the depression had inflamed divisions throughout the country: urban versus rural, farmers versus merchants, wealthy versus poor, and so on. Outbreaks of civil unrest mark 1784-87 as a historic pivot point. It is useful to consider how the depression of those years contributed to that pivot and how the subsequent civic reaction responded to the depression conditions.

On December 5, 1791, Secretary of the Treasury Alexander Hamilton presented to Congress his "Report on the Subject of Manufactures," which proposed significant government support for nascent American industry through tariffs, subsidies, and other incentives. It seemed that Hamilton's politico-economic vision for America had substantial political momentum, yet James Madison and his circle viewed Hamilton's proposals with alarm, and a financial panic in August-September, 1791, raised new anxieties about the rapid political and economic changes occurring in the United States. In the face of these concerns, would Congress sustain its support for Hamilton's vision?

Supplement to case UV7332. On December 5, 1791, Secretary of the Treasury Alexander Hamilton presented to Congress his "Report on the Subject of Manufactures," which proposed significant government support for nascent American industry through tariffs, subsidies, and other incentives. It seemed that Hamilton's politico-economic vision for America had substantial political momentum, yet James Madison and his circle viewed Hamilton's proposals with alarm, and a financial panic in August-September, 1791, raised new anxieties about the rapid political and economic changes occurring in the United States. In the face of these concerns, would Congress sustain its support for Hamilton's vision? This B case explores the reactions to and events following Hamilton's Report on Manufactures.

Student spreadsheet for case UV7243.

Supplement to case UV7329. This follow-up to "The Panic of 1907 and the High Tide of Progressivism (A)" (UVA-F-1781) explores how well the Federal Reserve Act of 1913 addressed the issues exposed by the panic of 1907, as well as providing further food for thought about financial reform.

In June 1913, President Woodrow Wilson confronts a legislative deadlock over terms to define a new Federal Reserve Bank for the United States. The recent panic of 1907 triggered a major civic reaction that sought to dispense with a 100-year-old antipathy to central banking. Now, Wilson must decide how best to harness the civic reaction in framing a new central bank. Wilson's dilemma occurs in the midst of a dramatic regime shift in American politics. The rise of Populists and Progressive politicians in reaction to the rapid transformation of America in the Gilded Age marks 1913 as a historic pivot point. It is useful to consider how the panic of 1907 contributed to that pivot and how the public subsequently reacted to the panic. This case and its supplemental B case are a vehicle for illuminating the dynamics of financial crises, comparing systems for financial stability such as clearinghouse associations and central banks, considering the origin of the U.S. Federal Reserve System, and exploring the dynamics of government policy making in the context of a regime shift in political sentiment.

Set at June 23, 2016, voters in the United Kingdom have just approved a referendum calling for the UK to leave the European Union. The case describes the motives for European integration, the rise of separatist movements in the UK and elsewhere, and the referendum process itself. The purpose of this case is to provide a contemporary counterpoint to a discussion of the economic and political motivations for the American Civil War. Dominant themes highlighted here are economic nationalism, political nationalism, cultural and ethnocentrism, and populism.