The effects of Dogma
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The Federal Reserve System was established by an act of congress in order to control the monetary policy, give us a stable economy, as well as controlling the money supply and the interest rate. To better understand the system however, one needs to be able to first identify what the Federal Reserve System and the monetary policy is, what makes them up, what their purpose is, as well as know what would happen to the United States economy if these systems didn't exist.
The Federal Reserve System or what is known to many as the Fed can be simply identified as the United States' central bank. In 1913 an Act of Congress established the Fed in order to provide the American people with a safe and secure way to control the monetary policy and maintain financial stability. "The Federal Reserve System is composed of 12 regional banks in major cities around the country and the Central Bank, which is run by the Board of Governors and is based in Washington, D.C."(www.investorguide.com). The one thing about the Fed that many do not know is that it is independent to the United States Government...