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Federal Reserve System

Created by the Federal Reserve Act in 1913, the Federal Reserve System is the apparatus that acts as a central bank in the United States. The Federal Reserve regulates the volume of base money in circulation, targets interest rates, sets minimum reserve levels for banks, and acts as lender of last resort during a financial crisis. After the financial crisis in 2008, the Federal Reserve began to pay interest on deposits held at the Federal Reserve and also gained financial regulatory power.

 

Gregory Rehmke - Money and Inflation

 

Steve Horwitz - Inflation

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Unfortunately, educating people about phenomena that are counterintuitive, not-so-easy to remember, and suggest our individual lack of human control (for starters) can seem like an uphill battle in the war of ideas. So we sally forth into a kind of wilderness, an economic fairyland. We are myth busters in a world where people crave myths more than reality. Why do they so readily embrace untruth? Primarily because the immediate costs of doing so are so low and the psychic benefits are so high.
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