From the early 1600s to the late 1700s the monetary system of the 13 colonies was so dysfunctional that basic transactions required cumbersome mathematical calculations, specialized almanacs, and extensive knowledge of foreign coinage weights, measures, and values. Once the Declaration of Independence was signed, one task of the Founding Fathers…

The Federal Reserve System (the Fed) is one of the most important financial institutions in the world. As the central bank of the United States, it influences the domestic money supply, credit, and interest rates with the goal of achieving stable prices and full employment for the world's largest economy. It provides a variety of services to…

The authors propose a pedagogical apparatus embodying a solid micro-foundation with emphasis on the public's choice between currency and demand deposits being an optimal decision. On the basis of the pedagogical exposition, the authors explain how money supply is related to the combined behaviors of the central bank, commercial banks, and the…

Maintains that, although U.S. currency today is pure fiat money and not backed by gold or any other precious metal, students frequently ask, "But what about the gold at Fort Knox?" Describes what is really located at Fort Knox, why it is there, its implications for public policy. (CFR)

This booklet examines the political events of the year 1912 in which the idea of the Federal Reserve System came into reality. Excerpts from reminiscences, letters and newspapers of the time give an inside look at the divergent forces and personalities that were brought together to form the central banking system of the United States. Sections of…

Utilizes Federal Open Market Committee (FOMC) transcripts to reveal how the Federal Reserve shapes monetary policy. Analysis of the documents shows the Committee examining a wide variety of indicators and approaches in an attempt to determine the appropriate time for a policy change. Inflationary pressures were a preeminent concern. (MJP)