Discussion of the Article The Influence of Economists on the Federal Reserve Act by Caporal

Decent Essays

Discussing the Federal Reserve After reading the article, The Influence of Economists on the Federal Reserve Act, it is apparent the author is trying to suggest that the economists played a major role in the banking reform which led to the development of the Federal Reserve Act. During the late 1800’s and early 1900’s, issues regarding the framework for which the bank operates on was inconsistent and did not perform as projected in foreseeable emergency situations. For this reason, economists developed strategies and offered a plan that would deter the U.S. from the current sub tier banking system currently in place into a more reliable centralized banking system. The author gives evidence to this by including an array of economists …show more content…

With copious amounts of supporting details, the author’s point of view may be one that focuses on economists in relation to the Federal Reserve Act and less on political agendas. The economists were the ones responsible for providing research and acknowledging different solutions to the crisis of 1907. The author depicts economists in the article as “direct advisors” and “policy makers” which gives the reader a better understanding of their roles in which they were perceived by the Senate and Congress (Caporal, 2003). These were individuals that strived for excellence and would go to great means to make an impact in the economy that would alter the banking system forever. Whether a reader agrees or disagrees with how the centralized banking system was created, the foundation for which it was built off of has continued to grow over a century with key fundamentals still in place today. The author’s implications demonstrate that an economists, the intellectuals, were responsible for the banking reform that led to a structured banking system. Could this all have been possible without the influence of the economists? In my opinion, the author has provided enough evidence that would allow the reader to properly analyze and have confidence in the integrity of the article. The conclusion of the article signifies the influence the economist’s had on the Federal Reserve Act and the

Get Access