The reserve banks and the federal reserve board

Assignment Help Financial Management

Reference no: EM131303190

According to economist Alan Meltzer of Carnegie Mellon University, who has written about the history of the Federal Reserve: Tension between the [Federal Reserve] Board and the reserve banks began before the System opened for business. . . . [Paul] Warburg described the problem. Dominance by the Board would allow political considerations to dominate decisions about interest rates.

Dominance by the reserve banks "would . . . reduce the Board to a position of impotence." Paul Warburg was one of President Wilson's initial appointments when the Federal Reserve Board began operations in 1914.

a. Why did Congress set up a system that had this tension between the Reserve Banks and the Federal Reserve Board?

b. Has the tension been resolved in the modern Fed? If so, how?

Reference no: EM131303190

Questions Cloud

Relation to management system improvement : Consider the relative value of the planning phase, specifically the objectives and targets, in relation to management system improvement efforts. How can the development and implementation of objectives provide an organization with a clear path to..

Outline a plan that managers in the low-calorie : Outline a plan that managers in the low-calorie, frozen microwaveable food company could follow in anticipation of raising prices when selecting pricing strategies for making their products response to a change in price less elastic.

Discuss how the awareness of individual learning styles : Compare your preferred learning strategies to the identified strategies for your preferred learning style.Discuss how the awareness of individual learning styles, pr

Regulating the ethical behavior : There are a topic about business ethic :"During this class, we have discussed the role of government in regulating the ethical behavior of companies. We have called it the institutionalization of ethics.

The reserve banks and the federal reserve board : Why did Congress set up a system that had this tension between the Reserve Banks and the Federal Reserve Board?

Prepare the journal entries and trial balance : Required: Prepare the journal entries, trial balance, Income Statement, Statement of Stockholders Equity and Balance Sheet for the year ending December 31st 2012

What is the principle of minimum differentiation : What is the principle of minimum differentiation and how does it relate to the free-rider problem we have in society? Under what conditions will the political process provide an inefficient amount of a public good?

Outcomes impact the learning processing : How does not having clear learning objectives that align with the overall learning outcomes impact the learning processing? Please provide an example with your answer.

Why was the practice initiative developed : Why was the practice initiative developed?Who was the target population?Who were the relevant stakeholders (who influenced and who was influenced by the program)?How would you describe the evidence translated into the practice initiative?How was the ..

User Account

All Pages