The Case Against the Fed
Encyclopedia
The Case Against the Fed is a 1994 book by Murray N. Rothbard taking a critical look at the United States
Federal Reserve, fractional reserve banking, and central bank
s in general. It details the history of fractional reserve banking and the influence that bankers have had on monetary policy
over the last few centuries.
Rothbard argues that the claim that the Federal Reserve is designed to fight inflation
is sophistry, that price inflation is caused only by an increase in the money supply, and that since only banks increase the money supply, then banks, including the Federal Reserve, are the only source of inflation.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
Federal Reserve, fractional reserve banking, and central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
s in general. It details the history of fractional reserve banking and the influence that bankers have had on monetary policy
Monetary policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment...
over the last few centuries.
Rothbard argues that the claim that the Federal Reserve is designed to fight inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
is sophistry, that price inflation is caused only by an increase in the money supply, and that since only banks increase the money supply, then banks, including the Federal Reserve, are the only source of inflation.