| akuma587 said: No, the Federal Reserve is one of the few good ideas that politicians had in the last century. We should do everything to preserve it. |
The Federal Reserve isn't much different from most central banks in the world ... its just being run much worse than most central banks.
Most Central Banks have the single mandate to preserve the value of money in the ecconomy, so the ammount of money in the ecconomy is directly related to the current (and expected) rate of inflation. The Federal Reserve has a dual mandate to preserve the value of the dollar and to prevent the ecconomy from going into a recession or a depression. Now, this (generally) means that the Federal Reserve keeps their interest rate so low that people take out large loans and make (foolish) investments, which drives up the value of the investment and generates a bubble; these bubbles have the side effect of threatening market failure when they burst
