The Monetary policy of The Federal Reserve System to 1929

This diploma thesis is trying to analyze the monetary policy of The Federal Reserve System in context of the economic process in the period 1913 -- 1929 and its reverse influence on the economy of The United States. In an effort to expose incompetence of the central control of money stock it brings more complex view including preceding development from the end of 18 century, trough the foundation The Federal Reserve System in the year 1913, the period of the world war I., trough era of prosperity of the twenties to the beginning of The Great Depression. In the theoretical part it brings monetary centralism face to face with liberalism of the Austrian school. Theoretical ground is based on the Austrian theory of business cycle which considers the reasons of economic fluctuation to be inflationary character of the commercial banking system at the head of central bank