Valiullin Hasan Khafizovich, PhD (Econ.), Prof., Department of Economics, “Dubna” University
All the centennial history of the Federal Reserve System of the USA (FRS, or simply ‘the Fed’) since its semilegal establishment in December 1913 has many valuable lessons to be learn carefully. At the very beginning of the FRS, the national currency issued by the system was defined in terms of gold. A hundred years later the world has U.S. dollar as a pure fiat money. Now the Fed is the largest buyer of U.S. public debt that enables the federal government to live beyond its financial means. What is the real mission of the powerful FRS, how it affects sustainability of the national and international financial systems? — these are the questions the author is trying to answer briefly in this paper.
KEYWORDS: Federal Reserve System, world economy, dollar, financial stability.
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