Federal Reserve explained....(for beginners)

The Federal Reserve aims to maintain price stability, maximum sustainable employment, and moderate long-term interest rates.
With price stability as the number one concern, we have bumpy roads ahead with the ongoing banking crisis. Let's see if we can reach this 2% inflation rate target.
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[@laurabutler7498]

Thank you for sharing your studies with us❤

[@BeersBikesandTheFlag]

Thanks for posting

[@rodolfo4379]

so many questions. I just don't fully understand how/why the Fed Reserve exists now and how/why inflation is a thing (like how did it start and why?). I understand the idea of inflation and the value of the dollar. But, the "how" and "why" parts seem to go over my head sometimes.

[@patrickewynne]

Hey great questions! I would go back and watch the video again, I do hit on how/why the Fed Reserve is in place. Inflation I believe became known during the Civil War and there have been cases of hyperinflation that have destroyed a country's currency. Venezuela is a good cast study. Hope this helps!

[@rodolfo4379]

@@patrickewynne Thank you, sir. Any good book recommendations on this? Watching videos and reading books on a topic seem to help gain a full understanding of topics. Given the current economic state of our country - it seems like a good idea to gain a better understanding of the Reserve/inflation etc.

[@patrickewynne]

@@rodolfo4379there are many books but I recommend SECRETS OF THE TEMPLE | BY WILLIAM GREIDER and 21st Century Monetary Policy: The Federal Reserve from the Great Inflation to COVID-19: By Ben S. Bernanke

[@devcen249]

⁠​⁠@@rodolfo4379So let me give you a simple explaination and hopefully some resources to guide you towards understanding this topic
Simply, think of it like this.
If there are 100 dollars split between 100 monkeys and 100 bananas , than each dollar is worth a banana, right? Yeah. But imagine a big monkey comes along and makes more dollars (the Fed). Now, theres 200 dollars. All of a sudden, the monkeys can buy more bananas because theres more money. Eventually though, there isnt enough bananas for all the monkeys, because the monkeys have too much money. So what does the banana shop do? Make the bananas more expensive! Thats fine, but to an extent. A small increase is alright, but double, triple the money? remember, not every monkey is equal, so the poorer monkeys starve because of too much inflation,
So in the current scenario what can the monkey kings do? They can make it harder to get money. If there is less money, there is less inflation. So they simply stop printing money, make borrowing money more expensive, and other means to stop the flow of money.
Some parts of this explanation are oversimplified for the sake of ease, but the general idea is true. You may use resources like Wikipedia and Thomas Sewell’s basic economics to understand this.

[@DavidLucas-zq8gb]

Watch "money as debt" to see how the current banking system evolved. Be ready to get mad.