There’s a new book out today, but it’s not exactly the hottest of summer reads.
It’s commonly called “The Beige Book”, but its formal name is “Summary of Commentary on Current Economic Conditions.” Sound exciting?
The Beige Book is a Federal Reserve report that compiles information from local banks and businesses in different districts of the country.
But New York Times Washington Correspondent Binyamin Applebaum says its contents are so dull, they spawned the very idea of the book in the first place back in 1970:
“The head of The Fed was bored of listening to the regional reserve presidents show up at meetings and read long, prepared speeches about how things were going in California and Kansas City and Chicago, and he basically said, ‘Enough! I don’t want to listen to this stuff anymore. I want you all to submit it before the meeting and we’ll make a nice fancy book and distribute it. And anyone who is interested can read it.”
The book’s original cover was actually red, and it was only distributed within The Fed. Until Paul Volker took over the reigns as Fed Chair and came up with an idea:
“Volker had a problem,” Applebaum says. “He was engaged in this big war on inflation and he was trying to drive inflation down. It was making people unhappy, unemployment was high, the economy was not doing that well, Congress was breathing down his neck and they wanted more information about what he was doing. They wanted him to explain what’s going on inside the Fed, and he didn’t want to do that. So he came up with an idea. He said, ‘Hey, we’ll give you this book we’ve been publishing for 13 years at that point. You can have it. Maybe you’ll like to read it. No one around here reads it, but it’s all yours.”
How can you make a book you don’t want people to read even more boring?
“The Fed actually gave it a beige cover to make the point that it was pretty boring,” Applebaum says. “It’s no accident.”
Applebaum says it worked so well that Congress considered changing the cover colors of some of its other reports from green and blue to beige as well.