The Federal Reserve Is The Central Banking Institution Of...

This briefing is designed to cover several key economic concepts which will help prepare you for your upcoming debate regarding the Federal Reserve. The Federal Reserve is the central banking institution of the United States of America. Commonly known as â€Å"the Fed†, the Federal Reserve plays an extremely important role in the economy of the USA, and by association, the world. Created in 1907 following a severe economic crisis, the Federal Reserve uses a variety of tools to promote growth, reduce instability, and prevent crises in the American economy. In general, the Federal Reserve accomplishes these goals by using their influence to maximize national employment, control inflation and interest rates, and increase national GDP. Before we discuss the Fed in any further depth, we will first review some of these basic economic concepts that are essential for understanding how it operates. GDP, or gross domestic product, is the sum total value of all goods and services p roduced by a country within a given year. To achieve this sum, everything produced and exported, all of the money spent by consumers and government, investments, and many other contributing factors are calculated and combined. A nation’s GDP is used as the main indicator of the economic status of that nation. In general, the higher a country’s GDP is, the greater the health of that country’s economy. However, GDP is not as helpful or accurate a calculation as â€Å"real GDP†. Real GDP is a term that refersShow MoreRelatedThe Federal Reserve System Is The United States Central Bank1339 Words   |  6 PagesHayden Hill Macroeconomics Professor Gislason 27 April 2017 The Federal Reserve System The Federal Reserve System, also called â€Å"the FED†, is the United States central bank, a national institution which governs the production and distribution of money. 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There was immoral investing in people’s retirement, pensions, and homes where it created at housing collapse, in which thousands of people over paid in their subprime loans and lost their homes in the process. The federal Reserve is a very selfish and heartless entity in America that has had powerful influence in American politics for d ecades. The Federal Reserve