Federal-Reserve-Board

Broz provides an easy to read text. His premises are clear, leading to true understanding. I've read much on this subject, but never such a complete work. It is as economical as can be expected; and I would argue more general than others have claimed. I highly suggest this book, and thank Dr. Broz for his contribution.

Broz's "The International Origins of the Federal Reserve System" is a excellent example of how single-case qualitative empirical research should be done. By providing a detailed formal theory framework, Broz is able to derive specific hypothesis about the development of the Federal Reserve in a manner that is both scientifically rigorous and historically detailed. While comparison with other cases would have been helpful (and neccessary if the model is to be generalized), this book is one of the best qualitative works in political science in general and political economy in particular in years.

You can't find a more accessible text for this topic. I have scoured the librarys of academia and find that this text is not only readable and enjoyable, but it is superior in its treatment of subject matter. A look at the index will tell any reader that Mr. Broz's volume is the compleat guide.

Don't miss your chance to read this welcoming introductory text.

For the realtively uninitiated. These days, anything related to the Austrian school of economics is worth al least looking at. Rothbard is a bit extreme, proposing that un-backed credit creation is equivalent to counterfeiting. In my opinion there is a difference, since money supply based solely on credit can evaporate into bad debt write-offs if a credit bubble bursts, while money supply cannot evaporate if based on the issuance of counterfeit currency. Nevertheless, this is interesting material in a concise book with no fluff. If you're reading a dozen books on the Fed and money, this might as well be one of them.

Ever since the creation of the Federal Reserve Board ("the Fed"), the American economy has been subject to a cycle of boom and bust. Most recently, we saw a bubble in technology stocks in general and telecommunication stocks in particular, fueled by the creation of credit. But no one wants to blame the culprit -- the Fed. Why has an institution that was created allegedly to bring stability to the economy caused such havoc? Equally importantly, why is an institution that has so much power so unaccountable?

Murray Rothbard (1926-1995) provides in this book an outstanding discussion of money, banking, the Fed, and U.S. monetary policy. As usual, Rothbard sees the "big picture." There was no need for a central bank, however the Banksters ' in combination with Big Business and Big Intellectuals -- pushed for the creation of the Fed. Rothbard's discussion of the battles between the Rockefellers and the House of Morgan is fascinating. (See his Wall Street, Banks and American Foreign Policy for a more elaborate discussion of this great "conspiracy" in U.S. history.)

The foundation for this work is Austrian economic theory. Through fractional reserve banking ' which is little more than legal counterfeiting ' banks are permitted to print new money, thus creating inflation. Yet the central insight of Austrian theory is that this creation of money doesn't simply increase prices, but distorts the cycle of production as it works its way through the economy. This creates the boom and bust cycles that have plagued our economy.

For a more detailed discussion of many of the issues raised in this book, the interested reader should consult Rothbard's The Mystery of Banking.

Murray Rothbard once again cuts through the popular dogma and conventional knowledge which government would prefer we all simply take on faith. In this case, the subject is money and the creation of it. Rothbard, an exceptional economist, showcases his ability to set aside the technical jargon and higher mathematics of the profession in favor of language accessible to everyone. In "The Case Against the Fed," Professor Rothbard examines the roots of money, as a commodity with subjective value which, because of wide-spread acceptance and other desireable qualities, becomes a medium of exchange for a people. Furthermore, he exposes the government's, via the Federal Reserve, monopolization of money. Rothbard shows how the Fed uses the power of the printing press to tax the people via inflation, to redistribute income, and to artificailly lower the interest rate leading to the infamous "business cycle" and the roller coaster of depressions and booms which our eceonomy is regualraly subjected to. Anyone who is concerned about the purchasing power of their income and about the unemployment which the business cycle regularly brings should read this book. Professor Rothbard portrays the federal government as what it is: the self-proclaimed, legitimate counterfeiter

Mr. Greider's book is a serious and controversial attempt to unlock the mysteries of the Federal Reserve Board - an institution that remains an enigma to most Americans. After reading this book, you will see why Fed Chairman Alan Greenspan is described as the second most powerful man in America. Greider not only goes behind the scenes to explain Federal Reserve policy from 1979 to 1986, he challenges the reader in a debate about the direction of monetary policy and more importantly, the desirability of having a Federal Reserve Board in the first place. I applaud Mr. Greider for bringing up this question that trancends the current political debate. But I do not agree with his proposal to put the Fed's powers in Congressional hands. That would only bring us back to the 1970s where political pressure on the Fed produced an easy money policy and inflation. Reversing this trend led to the harsh recession of 1981-82, which Greider despairs over. Our best hope is to keep the Fed in the hands of sober, intelligent people who put the needs of citizens over the needs of politicians.

Although I read this book years ago I'm reviewing it today because I perceive it is very important that more of us understand money, our monetary system and the intersection between money and power. Recent financial meltdowns in Thailand, Russia and Argentina provide a roadmap of the risks we face and which could be coming home to roost.

William Greider's book is a good introduction to the system. It's well written, informative and easy, entertaining reading.

Early in the book he asks a question about why it is that during the period leading up to the end of the 19th Century "Money and Monetary Systems" were hot topics in American political life, but today they are really off the radar screen?

That's a good question. Do you know the answer? I'd bet the answer is you, like most Americans probably don't. This book will give you the understanding you owe it to yourself to get. After all, it's your money.

Definitely one of the best books I've ever read. I concur with another reviewer who said that it explains central banking better than any college professor ever has.

My only criticism (similar to Dale Franks') is that Greider's main grumble, i.e. that the Fed is mainly out to protect Money's interests, is a bit shallow.

It's no doubt true that bankers and plutocrats lobby vigorously for higher interest rates, and that the Fed Chairman depends, at least to a degree, upon their support... But, realistically, how could the world be different? What system could possibly be better than the current compromise? I doubt Greider would seriously maintain that things would be better if the Congress ran the Fed, which would almost directly lead to an unstable currency. It's true that Volcker's medicine was harsh, but are we to imagine that bondholders could have been convinced to accept lower long-term interest rates by moral suasion or government promises?

It's sad that the little guys suffer the most from high interest rates, but don't blame the Fed. Don't blame anyone!

Still, though, with a book this great, Greider earned the right to make a political statement in the midst of what really is a set of difficult technical issues.

This much heralded account of the Federal Reserve is justly lauded in academic circles because Meltzer brings forth many Fed documents which have long been buried away and unavailable to scholars. He is able to pursue step-by-step Fed actions and relate what happened in all those many meetings behind closed doors. Through the mass of information he has uncovered and his own in-depth knowledge of monetary policy and the Fed, he is able to bring new facts to light and correct previous interpretations that are more often than not those of Friedman and Schwartz's A Monetary History of the United States.

The weaknesses of Meltzer's book stem from his massive archive of information and the strength of his predecessors. The sheer volume of information he is trying to convey prompts the narrative to drift and the reader sometimes loses the point. And, as a good academic historian, he is engaged in a dialogue with other historians of the Fed and monetary policy that can push the layman to the sidelines. Meltzer's history assumes the reader has a rather advanced knowledge of economics and finance such as an understanding of the real bills doctrine and the operation of an international gold standard. Also, the charts and tables are often not very helpful in understanding the text or at least could have been presented in a better manner.

Overall, Meltzer does not produce any stunning revelations but a great many correctives to previous accounts and much added detail. The novice to the history of US monetary policy would do better to read Richard Timberlake's book (though taken with a grain of salt because of its conservative leanings) or the classic work by Milton Friedman and Anna Schwartz.

Starts with the outright lie that the Federal Reserve is a government agency (it is actually a private corporation with government-appointed "decision makers"). Continues with farcical statements such as "the number one goal of the Fed is still to avoid inflation", while conveniently defining inflation as a rise in prices, rather than bloating of the money supply. Like every book and pamphlet ever written by a past or present Fed insider, this book meticulously avoids ever mentioning the Fed's single most important and most frequently abused power - that of creating new money at will out of thin air. Since one of the authors was a vice chairman of the Fed, you can forget journalistic ignorance as the excuse. The most important piece of information about the Fed was omitted purposely, with careful phrasing and organization. An omission this needless and this monstrous can only throw gasoline on the flames of conspiracy theories. One's hopes surge momentarily at noticing a section called "Let's be open" about open market operations. Nothing but varnish. Most Idiot books are OK. This one can serve only as quick primer on the knowledge which is non-essential to John Q. Public. Do yourself a favor. Look deeper.

mrbigbeast obviously disagrees with the purposes of the Federal Reserve, but he seriously misrepresents what is in the book. His political leanings are not unique, but the fact of the matter is that the Federal Reserve System is the central bank of the United States and was created by the Congress with the passage of the Federal Reserve Act in 1913. The Federal Reserve System includes the central governmental agency, the Board of Governors located in Washington DC with responsibilities to report regularly to Congress, and twelve regional Federal Reserve Banks that are corporations whose shares are owned by the member banks. There is an entire chapter explaning the New York Fed and its unique powers, as well as a second chapter explaining the other reserve banks.

Other chapters include Why Care About the Fed, How We Got a Federal Reserve, Fedspeak: The Secret Language of Money, and The Money Machine's Key Responsibiities. This book is an excellent overview if you want to know how the Fed works and how it impacts your daily life.