This case was developed for the purposes of: (1) Exploring the consequences of monetary management by fiscal authorities and competition among public policy priorities. The cases give particular attention to war finance and the subsequent resolution of the postwar debt overhang. (2) Considering the Fed's role in the US economy, reasons for central bank independence, and the risks of "capture" of the central bank by political authorities. (3) Reviewing the financial crisis of 1920-21 and its causes. (4) Critically evaluating the "orthodox" principles of central banking at the time, including the real bills doctrine, the penalty rate, and adherence to the gold standard.