Money and Banking
Question: Is our system of fiat money and fractional reserve banking right
for the United States?
Question 2: Granting that our banking and financial system contributed significantly
to the current recession and credit crisis, should the Federal government impose
strict regulations and restrictions on future banking activities?
The early 1900s - starting with the creation of the Federal Reserve System, and
followed by major changes undertaken in the Great Depression - significantly changed
and opened up our banking and monetary system in this country. As political and
social winds have shifted over the decades our policies have favored either more
regulation of the financial sector or less. Public sentiment, at the moment, seems
to favor more. We will explore the foundations of our money system, take a look
at basic banking behavior, and learn how the Federal Reserve uses monetary policy
to influence the economy. All in 90 minutes!
Economic Concepts We Will Cover
- Functions of Money
- Fiat versus asset-backed money
- Fractional reserve banking
- Organization and role of the Federal Reserve System
- Monetary Policy
Resources for More Information