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ECON D001 De Anza College The Federal Reserve System Discussion

ECON D001 De Anza College The Federal Reserve System Discussion

ECON D001 De Anza College The Federal Reserve System Discussion


A few years ago a student asked me, “Why is there so much stuff on the internet calling for the end of the Fed, but not nearly as much in support of it?”

I said, “It’s probably of the same reason why there’s a Flat Earth Society but no Round Earth Society.”

When it comes to economists, politicians, pundits, and even lay-persons, the Federal Reserve System can be a rather contentious subject. For example, there are those who believe it should be abolished & a gold standard should be reinstated; that it should be abolished & the control of the money supply handed to Treasury who would follow a “monetary rule”; it shouldn’t be abolished, but any policy decisions must be approved by Congress (yikes!); it is a “necessary evil”, but should nevertheless be left alone; and so on.

What say I? Now I’m not going to claim I have always agreed with their policy decisions or that they have not made mistakes–there isn’t enough room here for that–but I belong in the camp that fully supports the Fed as an institution, its role in the macroeconomy & pray Congress leaves it alone.

But who cares what I say? What say you?


Link (Links to an external site.) It should go
(Note: The $20 bill in the “End the Fed” link is a (no longer issued) US Treasury Note Link (Links to an external site.), not a Federal Reserve Note. Oops?)

Link (Links to an external site.) It should stay

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