|
more to help you understand how the entity known as the central bank is set-up:
The system was designed out of a compromise between the competing philosophies of privatization and government regulation.
In 2006 Donald L. Kohn, vice chairman of the Board of Governors, summarized the history of this compromise:[45]
Agrarian and progressive interests, led by William Jennings Bryan, favored a central bank under public, rather than banker, control. But the vast majority of the nation's bankers, concerned about government intervention in the banking business, opposed a central bank structure directed by political appointees.
The legislation that Congress ultimately adopted in 1913 reflected a hard-fought battle to balance these two competing views and created the hybrid public-private, centralized-decentralized structure that we have today.
|