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Money and Influence: The Federal Reserve System: Purposes and Functions

By Thomas J. Parker, The Federal Reserve Board
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By Thomas J. Parker, The Federal Reserve Board
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The Federal Reserve Act of 1913 established the Federal Reserve System as the country’s central bank. The Federal Reserve Act made the Federal Reserve System an independent, decentralized bank to better ensure that monetary policy would be based on a broad economic perspective from all regions of the country. The Federal Reserve Board has defined the term “monetary policy” as the actions undertaken by a central bank, such as the Federal Reserve System, to influence the availability and cost...

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