Federal Reserve Bank?

Question

Does the Federal Reserve Bank have the right to control the amount of money in circulation?

Answer 1

Remember that stuff in Econ 101 about M1, M2, and M3 measures of the money supply?  No one has complete control over the money supply.  When you empty your jar of coins, you are changing the money supply.  When credit card company offer credit to people who don't have money, they are increasing the money supply.

Answer 2

You betcha

Answer 3

"They quit backing the money with gold and the fed took over in 1913 causing the Great Depression a few years later"

I can't even begin telling you what's wrong with this statement

Answer 4

The secret service

Answer 5

Yes because they are a Private Bank and not owned by the Government. If this had some sort of regulation or oversight committee then maybe they wouldn't.

Answer 6

Yes.

Answer 7

yes they do

Answer 8

The US Government has given them this right, and it's bad policy! The US dollar is a fiat currency backed by nothing since we went off the gold standard.

Answer 9

The Federal Reserve is about the worst institution that ever happened to America.  They do print more money causing inflation which in a sense is a "hidden tax".

They quit backing the money with gold and the fed took over in 1913 causing the Great Depression a few years later.

Please watch Freedom to Fascism for more info:

http://video.google.com/videoplay?docid=...

And if you like that, support Ron Paul in the next election who will be on CNN June 5

www.ronpaul2008.com

Answer 10

no the Federal Reserve is nothing but a monopoly of banks that the U.S. doesnt even have control over .

Answer 11

Not according to Article I, sections 8 and 10 of the United States Constitution.  Those two sections set forth that the coinage of the United States shall adere to a 'gold standard,' meaning that there must be an equal hard asset -- gold and/or silver -- to account for every dollar in circulation.

The 'gold standard' was ended in 1971.

Now, the Treasury prints dollars solely at the leisure of the Federal Reserve -- a private entity.

Answer 12

No they have the tools to influence how much money is in circulation.  They may raise the interest rate on the money they lend to private banks which makes them raise their interest rate meaning less people want to borrow money and more of it stays in banks out of circulation.  But then consumers have less money to spend and the economy goes down so maybe they will lower the rate to get people out there borrowing money and spending.  Of course this has it's pitfalls too.  Economics is not a science it's an attempt at good geusses.