The Federal Reserve Bank Of The United States

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All throughout history, we have witnessed many nations decline from being rich and prosperous nation to a failing nation. This economic collapse is due to several factors such as wars , growth of unemployment, depression and not adequate financial planning and organization. This is why the establishment of central banks is necessary for a nation. With all the central banks around the world, their goal is to each play a huge role in a nation in order to sustain a strong economy. But because every banks deals with different issues and problems, their approach are distinct and individual. Monetary policy is one of the many different tools used to achieve economic stability. And there are goals set in order to deal with issues that every nations faces. Each and individual nations faces their own different problems and their approaches to theses issues differ as well. Therefore, it is necessary for the central banks to have different goals of monetary policy. The Federal Reserve Bank of the United States has it's own distinct but similar goals and it's because of it's population. Many people even migrate to United States to achieve the American dream. Many desire for stable jobs, buying their own homes with low interest rates, and being able to afford their basic necessities without worrying about the rise in prices. With the rise of expectations in the economy, there is also a rise in pressure into what goals they should be focusing on. The Federal Reserve wants to promote low unemployment not only because this is what the population ought for but also because it has a much more positive effect in our economy. It provides more income, more output, more consumption and there are less need for government welfare and this will help in... ... middle of paper ... ... techniques. Just like the central banks, every one of them differ from one country to another but they all have similar goals which is to keep the economy healthy and stable. Therefore, most of the central banks uses similar approach in order to achieve these goals.They're organizational structure is also similar from each other as well as their independence from their governing country. The Federal Reserve can be privately owned , The Bank of Canada can be publicly owned and the Bank of Japan can be both but they cannot keep their institution on their own especially because they hold vast amount of power in their own nations. If it has major influence on public, the government will also have major influence on them. With the intervention of the government or not, the central banks will always have one goal and it is to keep their economy healthy and stable.

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