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The Federal Reserve System is the central bank of the United States. It is responsible for the effective operation of the U.S. economy and conducts the nation’s monetary policy, stabilizes prices and moderates interest rates, and promotes the safety of individual financial institutions. In 1907, J. P. Morgan organized other leading financiers to backstop a run on banks and bring an end to a nationwide financial crisis. Later, with the encouragement of a powerful senator, a group of New York bankers went on to develop a plan for a central bank that was eventually adopted and that is still in effect today. Listen to the story to learn more about the formation of the Federal Reserve and America’s central banks by Congress.
Story Length: 5:19
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Maritime trade in today’s world is still very important as ships bring clothing to department stores and TVs to electronic stores. This public radio story explains how the International Maritime Organization, founded in 1958, oversees world shipping today. The IMO deals with problems the ancient Greeks would have recognized, including piracy.
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The United States economy has experienced slow but steady growth since the 2007-2009 recession. Historically, one result of an improving economy should be an increase in the overall level of prices – inflation. This has not been the case, however, and inflation has stayed low. Inflation has remained low in part because most people don’t worry about it rising, and they aren’t rushing to buy products before they go up in price. Listen to this story from Planet Money and hear what low inflation sounds like, and how your behavior can directly affect whether prices rise or fall.
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What should the government spend its money on? With a growing national debt this has become an important question. Economists see the government’s role in providing goods and services to be one that fills a need. The government should pay for things that make our lives better but that the private market cannot or will not provide. Listen to this story from Planet Money to learn the reasons why government has decided to pay for public goods such as lighthouses and autopsies.
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Robert Morris was a rich merchant from Philadelphia who became a banker and supplier to the American army during the Revolution. He built a fortune through international trade. He was successful at a time when reputation and personal relationships were the only guarantee that payments would be made. Initially against independence, Morris went along with the majority of Congress when it decided in favor, and signed the Declaration of Independence. He was instrumental to the success of the American Revolution, financing the war with his own personal credit. Listen to his story to learn about this important and controversial Founding Father, Robert Morris.
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