Motivations for a Federal Reserve

Matt ShumanTuesday 12-3, April 15th

Monopoly

• Initially “The Landlord’s Game”• Conceived in 1906• Showcases negative aspects

of concentrating property into monopolies

www.halloffamememorabilia.comhttp://en.wikipedia.org/wiki/Monopoly_(game)

1907 Panic

• Easter in Bend• Carnegie• J.P. Morgan• Rockefeller

• Elisha and the bears

• 1907 Crash -24.4%• DotCom Crash -27.7%• Housing Crash -50%

DJI 14000 -> 7000www.theodorerooseveltcenter.org published May 8th, 1907

Federal Reserve

• Founded in 1913• Independent of Congress• Board members span

administrations

• Provides stability!

http://en.wikipedia.org http://en.wikipedia.org/wiki