Preview
Preview

Essay on The Federal Reserve System

:: 5 Works Cited
Length: 1969 words (5.6 double-spaced pages)
Rating: Aqua      
Open Document
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

After the Revolutionary War, many of the country’s citizens were in great debit and there was widespread economic disruption. The country was in need of an economic overhaul and the new country’s leaders would need to decide how to do this to ensure the new country did not fall apart. After two unsuccessful attempts at a national banking system, the Federal Reserve System was created by the Federal Reserve Act of 1913. Since its inception, the Federal Reserve System has evolved into a central banking system that grows with the country. The Federal Reserve System provides this country with a central bank that is able to pursue consistent monetary policies. My goal in this paper is to help the reader to understand why the Federal Reserve System was created, how it has evolved since it was created, and how it functions today.
To achieve this goal, I have organized my paper into three main sections, which have sub-sections. In the first section, I discuss why the Federal Reserve System was needed and the banks that preceded it. In the second section, I discuss the creation of the Federal Reserve System, key Acts that have affected it, and the evolution of its structure. I end my paper with a third section that explores the responsibility of the Federal Reserve System to be the monetary policy authority for the United States.
NEED FOR A NATIONAL BANK
After the War for Independence, the United States was in great need for financial structure. The war had caused economic disruption throughout the new country and the new country needed re-establish commerce, repay war debt, restore the value of the currency, and lower inflation. Alexander Hamilton, the first Secretary of the Treasury, decided to research the economic struc...


... middle of paper ...


...as over 75 years later before it made its last attempt, which is the system we have in place today. The Federal Reserve System has made many changes since it was first implemented but it remains the monetary policy authority it was created to be.


Works Cited

"The Structure of the Federal Reserve System." The Federal Reserve System Online. U.S. Federal Government, 08 Jul 2003. Web. 17 Sep 2011. .
Todd, Tim. The Balance of Power. First. Kansas City: Federal Reserve Bank, 2009. 1-2. Print.
United States. First Bank of the United States. Philadelphia: Federal Reserve Bank of Philadelphia, 2009. Web.
United States. History of Central Banking. Philadelphia: Federal Reserve Bank of Philadelphia, 2010. Web.
United States. Second Bank of the United States. Philadelphia: Federal Reserve Bank of Philadelphia, 2010. Web.


Click the button above to view the complete essay, speech, term paper, or research paper








This essay is 100% guaranteed.


Title Length Color Rating  
Essay on The Federal Reserve System - After the Revolutionary War, many of the country’s citizens were in great debit and there was widespread economic disruption. The country was in need of an economic overhaul and the new country’s leaders would need to decide how to do this to ensure the new country did not fall apart. After two unsuccessful attempts at a national banking system, the Federal Reserve System was created by the Federal Reserve Act of 1913. Since its inception, the Federal Reserve System has evolved into a central banking system that grows with the country....   [tags: Informative, Expository]
:: 5 Works Cited
1969 words
(5.6 pages)
Term Papers [preview]
The Federal Reserve System Essay - Theory Monetary policy is a process a central monetary authority employs to achieve certain macroeconomic objectives. In the United States the central monetary authority is the Federal Reserve (Fed). The Fed uses several methods to achieve two main, though not exclusive, goals: expanding the economy and reducing inflation. When the Fed wishes to expand the economy, it employs a policy called expansionary monetary policy. When it wishes to combat inflation, it employs a policy called contractionary monetary policy....   [tags: Economics] 1659 words
(4.7 pages)
Powerful Essays [preview]
Essay on The Federal Reserve System - A Federal Reserve System is the central bank of the United States. It was created by the Congress to give the nation a safer and more stable monetary and financial system. The purpose of a FED is maintaining the stability of the financial system and containing systemic risk that may arise in financial markets. The FED also conducts the United States’ monetary policy that means it influences money and credit. A Monetary Policy is when the authority of a country controls the supply of money, most of the time targeting a rate of interest to promote economic growth and stability....   [tags: monetary policy, frictional employment]
:: 4 Works Cited
1189 words
(3.4 pages)
Strong Essays [preview]
The Federal Reserve System: Modern Fascism And Absolute Power Essay - Most Americans feel the United States of America is a beacon of democracy and raw capitalism, the leader of the “free” world. The founding fathers had every intention of turning the new world into a full fledged democracy, devoid of any monarchy or source of totalitarian power. The constitution itself demands that our government be “of, for and by the people”, and be divided into complex units of checks and balances, designed to thwart any potential power struggle by one specific branch. In essence, the constitution of the United States is a perfect blueprint for democracy in its purest form, with power and control in the hands of its citizens....   [tags: Fed Federal Reserve Anti] 1640 words
(4.7 pages)
Strong Essays [preview]
The Purpose of the Federal Reserve System Essay - Over the past few years we have realized the impact that the Federal Government has on our economy, yet we never knew enough about the subject to understand why. While taking this Economics course it has brought so many things to our attention, especially since we see inflation, gas prices, unemployment and interest rates on the rise. It has given us a better understanding of the effect of the Government on the economy, the stock market, the interest rates, etc. Since the Federal Government has such a control over our Economy, we decided to tackle the subject of the Federal Reserve System and try to get a better understanding of the history, the structure, and the monetary policy of the powe...   [tags: The Fed and the Economy]
:: 6 Works Cited
2699 words
(7.7 pages)
Better Essays [preview]
Essay about The Federal Reserve System - The Federal Reserve System The Federal Reserve System was founded by Congress in 1913 to be the central bank of the United States. The Federal Reserve System was founded to be a safer, more flexible, and more stable monetary financial system. Over the years, the role of the Federal Reserve Board and its influence on banking and the economy has increased. Today, the Federal Reserve System's duties fall into four general categories. Firstly, the FED conducts the nation's monetary policy. The FED controls the monetary policy by influencing credit conditions in the economy....   [tags: Papers] 1079 words
(3.1 pages)
Strong Essays [preview]
Essay about The Federal Reserve System - The Federal Reserve System was founded by Congress in 1913, it began to operate in Nov., 1914. Its setup, although somewhat altered since its establishment, particularly by the Banking Act of 1935, has remained substantially the same. Structure The Federal Reserve Act created 12 regional Federal Reserve banks, supervised by a Federal Reserve Board. Each reserve bank is the central bank for its district. The boundary lines of the districts were drawn in accordance with broad geographic patterns of business, and the banks were placed in Boston, New York City, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St....   [tags: essays research papers] 984 words
(2.8 pages)
Strong Essays [preview]
The Federal Reserve System Essay - What the world needs now is Money Sweet Money"; that is not the way the song goes however that is surely the way our world and economy does. Money and its importance relative to the US Government have always been difficult to figure out especially when it comes to interest rates. Due to our Federal Reserve System, its chairman Alan Greenspan, and his Board of Governors dedicated to seeing that our economy blossoms, those doubts have become a thing of the past, for now. The Federal Reserve System is a central banking of the US Government, most commonly known as the Fed....   [tags: Economics Economy] 1084 words
(3.1 pages)
Good Essays [preview]
Essay about The Federal Reserve System - The Federal Reserve System In December of 1913, the Federal Reserve System (Fed) was created by the Federal Reserve Act. According to Congress, the role of the Federal Reserve System is to promote maximum employment, stability and growth of the economy, and moderate long-term interest rates. The Fed employs Monetary Policy in an effort to manage both the money supply and interest rates while stimulating the economy to operate close to full employment. One school of thought called Monetarism believes that the Federal Reserve should simply pursue policies to eliminate inflation....   [tags: essays papers] 1469 words
(4.2 pages)
Strong Essays [preview]
Essay about Federal Reserve System - Although the name the Federal Reserve System sounds governmentally controlled, that assumption of conducting is false. The FRS is independently within the outskirts of the government. Final decisions within the board are not concluded by the president, but the Federal system allows for a review by Congress. The FRS will annually report to Congress basically to inform them on the status of their work in progress. So the FRS is clearly established and controlled by themselves within the guidelines and restrictions by government....   [tags: essays research papers fc]
:: 1 Works Cited
1289 words
(3.7 pages)
Strong Essays [preview]