Some Effects Of The Federal Reserve System On The American Economy

The Federal Reserve System is considered by many people to be a mysterious organization because most people have only a vague idea of the functions and operations of the Federal Reserve System. The purpose of this study is to study the organization of the Federal Reserve System and to investigate the effects that the system has upon the American economy. In seeking the origin of the reform legislation known as the Federal Reserve Act of 1913, the economic historian usually begins with the year 1893, It was that year that the panic and the depression brought to American bankers, businessmen, and statesmen a realization of the weaknesses of the American banking system. In a very real sense, the people of this country began to look in the direction of foreign systems to discover the reasons for their superiority. The complacency which had marked American banking thought was severely shaken