Sizeable domestic currency bond issuances are necessary to ensure supply of bonds in the domestic bond market which is a very critical ingredient for development of the domestic bonds market.
Successes were common but so too were unintended side-effects: In 1934 the Federal Reserve gained the authority to set margin requirements to counter increases in stock-market credit by curbing bank loans to stock brokers. By 1974, non-bank lending and derivatives had become so abundant as a compensatory source of credit that the Federal Reserve decided the policy tool was no longer effective.