Abstract
Many have attempted to distill lessons on combating economic crises from the experiences of the US Reconstruction Finance Corporation (RFC) during the 1930s. However, the resulting policies have been subject to widespread doubts and criticisms. Many economic historians doubt RFC assistance to financial intermediaries and commercial & industrial firms contributed a great deal to stabilizing the US economy during the Great Depression. RFC assistance probably did not, therefore, form a significant basis for the general economic recovery to follow. The present essay does not dispute that point. However, between 1932 and 1937, the RFC experimented with a wide variety of programs targeted toward resolving systemic distress. It did so by attempting to stimulate credit and capital market activity through acting as a lender of last resort, recapitalizing the banking industry, and providing direct credit to commercial and industrial enterprises.
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