{"id":2828,"date":"2021-10-29T20:45:18","date_gmt":"2021-10-30T01:45:18","guid":{"rendered":"https:\/\/abudinen.com\/blog\/?p=2828"},"modified":"2021-10-29T20:45:19","modified_gmt":"2021-10-30T01:45:19","slug":"federal-reserve","status":"publish","type":"post","link":"https:\/\/abudinen.com\/blog\/2021\/10\/29\/federal-reserve\/","title":{"rendered":"Federal reserve"},"content":{"rendered":"\n

The Federal Reserve System<\/a> (also known as “the Fed”) has faced various criticisms since it was authorized in 1913.[1]<\/a><\/sup>Nobel laureate<\/a> economist Milton Friedman<\/a> and his fellow monetarist<\/a>Anna Schwartz<\/a> criticized the Fed’s response to the Wall Street Crash of 1929<\/a> arguing that it greatly exacerbated the Great Depression<\/a>.[2]<\/a><\/sup> More recent prominent critics include former Congressman Ron Paul<\/a>.[3]<\/a><\/sup><\/p>\n\n\n\n

  1. Johnson, Roger T. (February 2010). “Historical Beginnings… The Federal Reserve”<\/a> (PDF). Federal Reserve Bank of Boston<\/a>. Retrieved 30 December 2014.<\/li>
  2. ^<\/a><\/strong> Milton Friedman; Anna Jacobson Schwartz (2008). The Great Contraction, 1929\u20131933<\/em><\/a> (New ed.). Princeton University Press. ISBN<\/a> 978-0691137940<\/bdi><\/a>.<\/li>
  3. ^ Jump up to:a<\/strong><\/em><\/sup><\/a> b<\/strong><\/em><\/sup><\/a> Ron Paul (2009). End the Fed<\/em><\/a>. Grand Central Publishing. ISBN<\/a> 9780446568180<\/bdi><\/a>. out of thin air.<\/q><\/li><\/ol>\n\n\n\n

    In The Case Against the Fed<\/a><\/em>, Murray Rothbard<\/a> argued in 1994 that, although a supposed core function of the Federal Reserve is to maintain a low level of inflation<\/a>, its policies (like those of other central banks<\/a>) have actually aggravated inflation. This occurs when the Fed creates too much fiat money<\/a> backed by nothing. He called the Fed policy of money creation<\/a> “legalized counterfeiting<\/a>” and favored a return to the gold standard<\/a>.[5]<\/a><\/sup> He wrote:<\/p>\n\n\n\n

    [I]t is undeniable that, ever since the Fed was visited upon us in 1914, our inflations have been more intense, and our depressions far deeper, than ever before. There is only one way to eliminate chronic inflation, as well as the booms and busts brought by that system of inflationary credit: and that is to eliminate the counterfeiting that constitutes and creates that inflation. And the only way to do that is to abolish legalized counterfeiting: that is, to abolish the Federal Reserve System, and return to the gold standard, to a monetary system where a market-produced metal, such as gold, serves as the standard money, and not paper tickets printed by the Federal Reserve.[6]<\/a><\/sup><\/p><\/blockquote>\n\n\n\n

    1.  Murray Rothbard (2007). The Case Against the Fed<\/em><\/a>. Ludwig Von Mises Institute. pp. 27\u201329, 146. ISBN<\/a> 978-0945466178<\/bdi><\/a>.<\/li>
    2. ^<\/a><\/strong> Murray Rothbard (2007). The Case Against the Fed<\/em><\/a>. Ludwig Von Mises Institute. p. 146. ISBN<\/a> 978-0945466178<\/bdi><\/a>.<\/li><\/ol>\n\n\n\n

      One critique is that the Federal Open Market Committee<\/a>, which is part of the Federal Reserve System, lacks transparency and is not sufficiently audited.[66]<\/a><\/sup> A report by Bloomberg News<\/a> asserts that the majority of Americans believes that the System should be held more accountable or that it should be abolished.[67]<\/a><\/sup> Another critique is the contention that the public should have a right to know what goes on in the Federal Open Market Committee (FOMC) meetings.[68]<\/a>[69]<\/a>[70]<\/a><\/sup><\/p>\n\n\n\n

      1.  Poole, William<\/a> (July 2002). “Untold story of FOMC: Secrecy is exaggerated”<\/a>. St. Louis Federal Reserve.<\/li>
      2. ^<\/a><\/strong> Zumbrun, Joshua (9 December 2010). “Majority of Americans Say Fed Should Be Reined In or Abolished, Poll Shows”<\/a>. Bloomberg<\/em>.<\/li>
      3. ^<\/a><\/strong> Poole, William (6 October 2004). “FOMC Transparency”<\/a>(PDF). Federal Reserve Bank of St. Louis Review<\/em>. Federal Reserve Bank of St. Louis. 87<\/strong>: 1\u20139.<\/li>
      4. ^<\/a><\/strong> “Remarks by Chairman Alan Greenspan – Transparency in monetary policy”<\/a>. Federal Reserve<\/em>. 11 October 2001.<\/li>
      5. ^<\/a><\/strong> “Remarks by Vice Chairman Roger W. Ferguson, Jr.\u2014Transparency in Central Banking: Rationale and Recent Developments”<\/a>. Federal Reserve<\/em>. 19 April 2001.<\/li><\/ol>\n\n\n\n
        \n