The Federal Reserve system allegedly began in order to eliminate banking and financial crises. The false premise that economic activity can be directed through monetary policy has failed consistently.
Of all the central banks in the world none has more influence than the Federal Reserve System of the United States. In spite of its influence, however, the Federal Reserve remains highly misunderstood, both in the manner in which it operates and the influence it has on financial markets.
In this subheading of the Money and Banking section I hope to clear up some of the widespread misunderstanding. Only with a clear understanding of the Federal Reserve System can we devise a path to improving the money and banking system in the United States, and hopefully throughout the world.