This short history consists of tables from "Reserve Requirements: History, Current Practice, and Potential Reform" by Joshua N. Feinman, Federal Reserve Bulletin June 1993. This article contains a complete compilation of the reserve requirements from the beginning of the Fed.

1913 through 1966

For the first 50 plus years the Fed used a fairly simple, but multi-tiered, set of reserve requirements. Pay particular note to the increases in reserve requirements during the heart of the Great Depression. (Not a good move. Remember the deflation scare.)

1966 through 1980

During this period the bureaucrats seemed to need to make things more complicated.

1980 to Present

In 1980 the Fed moved dramatically toward simplicity (and insanity?).

The critics of Fed Chairman Alan Greenspan generally overlook the one most inflationary move that the Fed made during his tenure: establishing the current reserve requirements in 1992.

On the next three pages I provide some graphic evidence of the effects of this reduced reserve requirements.