Why Is It More Correct to Say That the Fed

question 21

Essay

Why is it more correct to say that the Fed (the central bank) controls the monetary base than to say it controls the amount of reserves?

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Definitions:

Article I

Article I is the first section of the United States Constitution, establishing the legislative branch of the government, specifying the powers and structure of Congress.

Fourteenth Amendment

The Fourteenth Amendment to the U.S. Constitution grants citizenship to all persons born or naturalized in the U.S. and ensures equal protection under the law.

Obergefell v. Hodges

A landmark Supreme Court case in 2015 that legalized same-sex marriage across all United States, affirming marriage equality.

Full Faith

A phrase often used in legal contexts, especially in the "Full Faith and Credit Clause" of the U.S. Constitution, referring to the obligation of states to recognize the public acts, records, and judicial proceedings of every other state.