Even for readers who get through the day without thinking about monetary policy, Ms. Binder and Mr. Spindel offer compelling insights. . . . [An] impressively researched and often riveting study.
---Roger Lowenstein, Wall Street Journal"This book examines the interrelationship between Congress and the Federal Reserve over time, analyzing the congressional politics of the Federal Reserve's founding in 1913 and its subsequent institutional development through the aftermath of the 2008 financial crisis. Binder and Spindel incorporate a wealth of systematic data into their historical narrative."—Frances E. Lee, University of Maryland
One of Project Syndicate’s Best Reads in 2017 (chosen by Koichi Hamada)
"The unique blend of historical and political analysis in The Myth of Independence makes this an important book. No matter how much you already know about the Federal Reserve, you'll learn more in these pages."—Alan Blinder, author of After the Music Stopped
"The Federal Reserve makes economic policy subject to political constraints. This observation may be commonplace, but thoughtful and systematic analysis of it is rare. In this elegant and accessible book, Binder and Spindel shed new light on this tension between economics and politics. Their conclusion, that the Fed's independence is at best fragile and at worst illusory, amounts to a fundamental challenge to conventional thinking about monetary policy in the United States."—Barry Eichengreen, University of California, Berkeley
"A fascinating account of the way political forces in Congress have shaped the Federal Reserve at critical junctures in its history. Highly original and timely, this is a must-read for anyone who wants to understand the political pressures that the Fed will face in coming years."—Liaquat Ahamed, author of the Pulitzer Prize-winning Lords of Finance
"Independent central banks operate within regimes created by and persisting at the pleasure of legislators. Exploring what exactly this has meant for Fed-Congress relations, Binder and Spindel have produced a fascinating history and timely meditation on the contours of Fed power. To understand how the Fed fits into American democracy, read this book."—Paul Tucker, Harvard Kennedy School and chair of the Systemic Risk Council
"With persuasive evidence, The Myth of Independence looks at how the structure and behavior of the Fed is shaped in fundamental ways by Congress. This book is an important and interesting contribution to the study of the American political economy."—Nolan McCarty, Princeton University
Binder and Spindel have written an extremely thorough study of the Federal Reserve that shows how the institution, while in theory insulated from politics, is in reality anything but. Binder and Spindel persuasively argue that Congress and the Federal Reserve are interdependent entities. . . . Throughout, fascinating graphics depict the interrelationship between the Fed and congressional politics: one chart links the number of bills introduced to govern Fed policy with the unemployment rate. Binder and Spindel convincingly dispel the ‘myth' of the Fed’s independence as one of the Capitol’s urban legends.
"There have been many books about the Fed. But we've not had one that truly understands the history and politics surrounding the Fed, and systematically analyzes it. The Myth of Independence sets a new standard, showing how the Fed came about, how it has changed and where it might be going, and what role Congress has played and continues to play in that process."—Norman Ornstein, coauthor of It’s Even Worse Than It Looks
