Hoover had lost control of the agenda in mid-1931. Events, both at home and abroad, over which he could exercise no effective control had washed away the foundations of the original model of economic stabilization. But if the old model was no longer serviceable, what was to replace it? The pressures of day-to-day crisis fighting afforded little opportunity for reflection to develop a new body of doctrine. Though he had become the captive of events, Hoover was still determined to master them if he could. Certainly he remained persuaded that presidential guidance was crucial in the battle against depression. His long-standing doubts about the compatibility of the pursuit of private self-interest with the larger social good had been reinforced by his experience in the first two years at the White House. On its own, the private sector of the economy could not be relied upon to solve the economy's problems.

A new approach to the management of economic policy began to take shape in October 1931. Unlike the earlier doctrine of macroeconomic stabilization, it was not part of a preconceived grand design. Instead it emerged piecemeal, largely in response to immediate pressures of the moment. As its various components were put in place, it began to take on an internal coherence. Top priority on the new agenda was solidification of the banking system. Securing this base at home was the essential first step. Later, with American leadership, the international monetary system should be rebuilt.