The year 1923 was thus one of the first in which the Federal Reserve confronted normal peacetime financial conditions, and it took the opportunity to articulate its views on the appropriate conduct of policy in such conditions. 8  The Federal Reserve could undo the effects of gold inflows on the domestic money supply through open market operations, discussed later.
9  See, for example, Eichengreen (1992). 10  See Friedman and Schwartz (1963), Humphrey (1982), and Meltzer (2003). 2  BIS central bankers’ speeches  window and the interest rate at which it lent, the discount rate.