Discuss the Role of the Federal Reserve in the American

question 53

Essay

Discuss the role of the Federal Reserve in the American economy. What are the Fed's specific functions? What are the tools at its disposal? How did the Fed originate and how is it staffed? Should an institution that is not controlled by the people, and which is not fully an instrument of government, be allowed to wield as much influence as the Fed does?

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Definitions:

Robert Merton

An influential American sociologist known for developing theories such as the strain theory and concepts like self-fulfilling prophecy.

Capitalism

An economic system characterized by private ownership of the means of production and the creation of goods or services for profit in a competitive market.

Karl Marx

A 19th-century philosopher, economist, and revolutionary socialist whose works, including the Communist Manifesto, have had a profound impact on political theory and sociology.

Émile Durkheim

A French sociologist best known for his foundational work in sociology and for his theories on the social causes of suicide.