Study Document
Federal Reserve and How to Essay
Pages:5 (1526 words)
Sources:5
Document Type:Essay
Document:#52702579
Rather than propping up "bad blood" and allowing the "illusion" of wealth to continue to be fostered, the Federal Reserve should allow the market to flush out the "bad blood" and operate the way it is intended.
Conclusion
In conclusion, the good that the Federal Reserve does is to monitor economic policy, encourage maximum employment and long-term stability. The way it does so, however, especially in times of crisis such as the world is currently experiencing is highly criticized by economists who do not support managerial decisions made by Bernanke and others. As Ron Paul states, the Federal Reserve could better itself by putting an end to fractional reserve banking and allowing institutions, which are filled with bad debt, to collapse rather than continuing to prop them up at taxpayers' expense. Doing so only helps bring down the value of the dollar, which it is supposed to protect.
Reference List
Halloran, M. (2009). Systemic Risks and the Bear Stearns Crisis. The Road Ahead for the Fed. CA: Hoover Institution Press.
Kohn, D. (2009). Monetary Policy in the Financial Crisis. The Road Ahead for the Fed.
CA: Hoover Institution Press.
Mission. (2009). Federal Reserve. Retrieved from http://www.federalreserve.gov/aboutthefed/mission.htm…
Sample Source(s) Used
Reference List
Halloran, M. (2009). Systemic Risks and the Bear Stearns Crisis. The Road Ahead for the Fed. CA: Hoover Institution Press.
Kohn, D. (2009). Monetary Policy in the Financial Crisis. The Road Ahead for the Fed.
CA: Hoover Institution Press.
Mission. (2009). Federal Reserve. Retrieved from http://www.federalreserve.gov/aboutthefed/mission.htm
Related Documents
Study Document
Federal Reserve
Federal Reserve Board is the most powerful financial institution in the country and is actually the Central bank of United States. This institution is responsible for regulating financial system of the country by formulating monetary policies and by changing the fund rates. The Fed is not completely independent and works together with the administration and the Department of the Treasury. It is responsible for formulating and implementing monetary policies in
Study Document
Federal Reserve
Federal Reserve The key information in the January 14, 2004 Federal Reserve summary ranged from mildly encouraging to 'no change' as far as the economy was concerned. Virtually all areas were experiencing small amounts of employment growth, although there were pockets of decline as well. ("Beige Book," January 14, 2004) In fact, retail sales were up a small amount, mainly because upscale retail stores were having a good season, although the lower
Study Document
Federal Reserve Operations in the United States
Federal Reserve Operations in the United States Functions of the Federal System in Control of Money Supply The discount rate, according to the federal system, is the interest rate, which the Federal Reserve imposes on the loans it gives to Federal Banks that are troubled and need financial support. Processing of lending to the banks is done through the 'discount window', which in most cases is controlled by the Reserve Banks. Factors influencing
Study Document
Federal Reserve Policies 2000- the First Decade
Federal Reserve Policies 2000- The first decade of the 21st century saw the U.S. economy on a peripatetic through tumultuous events, euphoric highs, and abysmal lows. The ten-year window highlighted three periods: 2000-2004, 2004-2007, and 2007-2010 in which the Federal Reserve actively utilized their policy levers to achieve their dual policy mandate of full employment and low inflation. The Fed's policy bag includes: the Fed funds rate, open market operations, discount
Study Document
Federal Reserve System More Commonly
" (Structure of the Federal Reserve System) The 12 Federal Reserve Banks extend banking service to the depository institutions and also to the federal government. To the financial institutions it takes the responsibility of maintaining reserve and clearing out accounts and entails various payment services incorporating checks, electronically transferring funds and circulating and receiving coins and currency notes. As the banker of the Federal Government they function as fiscal agents. They
Study Document
Federal Reserve Bank
Federal Reserve Bank Financial services as an industry has progressed to become one of the widely transforming sectors of the global economy, having significant changes in information transference and processing, innovation in terms of commodities and processes, and rapid competition among the financial institutions -- among themselves and also among their several customers. The industry and its part in the transformations in the economy show that the supervising and regulatory structure