Unit 4: The Federal Reserve System
This unit discusses the early evolution of the Federal Reserve System in the United States. It examines the precedents that led to the Federal Reserve, its early history, and the Bretton Woods agreement of 1944. It focuses on the difference between wholesale and retail money, which will be discussed later in the context of central bank digital currencies (CBDCs). It examines the layered money system of the Federal Reserve during its first few decades of existence. The history of the Great Depression and subsequent government and Federal Reserve action surrounding gold and the monetary hierarchy is examined. This era began delinking the monetary system from gold as its first layer. Finally, this unit details the Bretton Woods agreement and how that agreement shaped the money system today.
Completing this unit should take you approximately 1 hour.
4.1: Early American Money
This subunit summarizes the American monetary situation before 1907, including the origin of the word "dollar". It discusses the monetary mix in the United States in the context of layered money.
4.2: The Federal Reserve System
This subunit introduces the Federal Reserve system. It discusses the Panic of 1907 and how it led to a United States central bank. It discusses the Federal Reserve Act and explains the purpose of the act. It introduces the difference between wholesale and retail money, which helps understand the evolution of the international monetary system and future central bank digital currencies (CBDCs). It also introduces the Federal Reserve's gold coverage ratio.
4.3: The Evolution of the Federal Reserve
In this subunit, we examine the evolution of the American monetary system under the Federal Reserve. We will explain how the Great Depression unleashed a series of events, including Executive Order 6102, the Gold Reserve Act, and the Federal Deposit Insurance Corporation that forever changed the monetary system.
Unit 4 Review and Assessment
- Receive a grade