Institutions
Federal Reserve System
Also Known As The Fed
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The Federal Reserve System is the central bank of the United States, established by the Federal Reserve Act, which President Woodrow Wilson signed into law on December 23, 1913. It was created to provide the country with a more stable and elastic currency and banking system after a series of nineteenth and early twentieth century financial panics, including the panic of 1907, exposed the instability of the existing arrangement of independent banks with no central lender of last resort. The Federal Reserve sets monetary policy, supervises and regulates banks, and works to maintain financial stability, and its decisions, particularly around interest rates and the money supply, are a recurring point of disagreement between the economic schools of thought represented in this atlas, from Monetarist arguments about rule bound money growth to Keynesian arguments for active demand management.
Facts
Founding Year Founding Date HeadquartersWashington, D.C., United States 1 Cross-Tradition Connections
Associated With
The Federal Reserve is among the member central banks that own and participate in the Bank for International Settlements, the institution that supports cooperation among the world's central banks.
Dot-com Bubble, Events Distinct from this entity''s existing edge to Alan Greenspan the person: this edge names the institution he chaired, whose rate increases are credited in the cited passage with helping burst the bubble.
Founding Event
Sources
1. Encyclopaedia Britannica
Encyclopaedia Britannica, Inc.
2. Wikipedia
Wikimedia FoundationFederal ReserveQuote, Federal Reserve
It was created on December 23, 1913, with the enactment of the Federal Reserve Act
2. Wikipedia
Wikimedia FoundationFounding Event: Founding of the Federal Reserve SystemView the Source 2. Wikipedia
Wikimedia FoundationAssociated With: Volcker Disinflation, Volcker ShockQuote, Associated With: Volcker Disinflation, Volcker Shock
The Federal Reserve board led by Volcker raised the federal funds rate, which had averaged 11.2% in 1979, to a peak of 20% in June 1981
2. Wikipedia
Wikimedia FoundationAssociated With: COVID-19 Economic Stimulus, CARES ActQuote, Associated With: COVID-19 Economic Stimulus, CARES Act
the largest economic stimulus package in U.S. history
2. Wikipedia
Wikimedia FoundationAssociated With: 2008 Financial Crisis, Bankruptcy of Lehman BrothersQuote, Associated With: 2008 Financial Crisis, Bankruptcy of Lehman Brothers
Lehman Brothers filed for Chapter 11 bankruptcy protection on Monday, September 15, 2008
2. Wikipedia
Wikimedia FoundationAssociated With: Paul Volcker, Paul Volcker, Lead sectionQuote, Associated With: Paul Volcker, Paul Volcker, Lead section
was an American economist who served as the 12th chairman of the Federal Reserve from 1979 to 1987
2. Wikipedia
Wikimedia FoundationAssociated With: Dot-com Bubble, Dot-com bubble, Bursting the bubble sectionQuote, Associated With: Dot-com Bubble, Dot-com bubble, Bursting the bubble section
Meanwhile, Alan Greenspan, then Chair of the Federal Reserve, raised interest rates several times; these actions were believed by many to have caused the bursting of the dot-com bubble.
Bank for International Settlements (Official Website)
Bank for International SettlementsAssociated With: Bank for International SettlementsView the Source The New Palgrave Dictionary of Economics
Palgrave MacmillanAssociated With: Central Bank Independence
The New Palgrave Dictionary of Economics
Palgrave MacmillanAssociated With: Quantitative Easing
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