The Federal Reserve and the Community Analytical Essay by Jay Writtings LLC

The Federal Reserve and the Community
This paper looks at the implications of the Federal Reserve system in the United States on the community at large.
# 118248 | 1,603 words | 7 sources | MLA | 2009 | US


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Description:

In this article, the writer notes that the Federal Reserve System is the central bank of the United States and was created by Congress to provide the nation with a safer, more flexible and more stable monetary and financial system. The writer points out that this system has great implications over all aspects of the American economy and community through the means by which they react to the pendulum of the economy and its swinging inflation rates. The writer also discusses that the setting and control of rates of both inflation and taxation have a direct influence upon numerous factors affecting the community, namely the housing market, wages and employment rates, and the growth of the overall economy through the regulation of borrowing, and thus the rate of business growth and expenditure. The writer concludes that through efficient regulation of the American Economy, the Federal Reserve Bank is able, through its best efforts and undoubtedly a bit of luck, to ensure the prosperous functioning of the community, on all fronts.

From the Paper:

" The Federal Reserve without a doubt plays a huge governing over the American economy and the communities of its citizenry. Its regulation of rates has direct implications upon all facets of our society. This begins with its policies in regards to the e ever important economical aspects of inflation and taxes. If taxes are raised alongside the presence of unacceptably high inflation being allowed, the real value of the dollar decreases as the actual money available does as well, at the behest of higher tax rates upon personal income, corporate gains, and dividends. This has a ripple effect and results in a reduction of purchasing in the housing market, and subsequent labor related losses in relation to the construction and real estate industries. Concurrent with this is an overall slowing in business spending, which reduces the overall growth of the economy and also the level of unemployment."

Sample of Sources Used:

  • "What is the Federal Reserve?" The Federal Reserve Board. Accessed 13 April 2007.< http://www.federalreserve.gov/generalinfo/faq/faqfrs.htm>
  • Malpass, David. " Forbes. 179.8 2007, p41.
  • Mehring, James. " Business Week Online. 3/29/2007, p14.
  • Cooper, James C. "" Business Week. 4028, 2007, p25-26.
  • Bernanke, Ben. "" Business Week Online. 3/29/2007, p13-13, 1p; (AN 24537133)

Cite this Analytical Essay:

APA Format

The Federal Reserve and the Community (2010, January 15) Retrieved December 03, 2021, from https://www.academon.com/analytical-essay/the-federal-reserve-and-the-community-118248/

MLA Format

"The Federal Reserve and the Community" 15 January 2010. Web. 03 December. 2021. <https://www.academon.com/analytical-essay/the-federal-reserve-and-the-community-118248/>

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