With its beginnings in 1914, the fed has attacked critics for what she is polusekretnye institution, observation closed to the public. Critics argue, for example, that even when the fed publishes the decisions, it does so with significant delay. In particular, discussions of the Federal Committee on open market operations published in the Gazette of the Federal reserve, but only after the next meeting of the Committee.Prior to the enactment of Humphrey – Hawkins in 1978, the fed was not required to declare the target benchmarks of money supply growth. The adoption of this act obliged the Chairman of the Federal reserve Board twice a year to discuss and explain to the U.S. Congress policy objectives. But even after that, some observers note that the fed’s Declaration is too generalized and vague.
It’s obvious the fed’s desire to maintain its opacity can be explained by the fact that the adoption by the company of money requires serious confidence. In this sense, the fed acts as the guardian of this trust. In the end, money can be a simple piece of paper or an electronic record in the computer, therefore, the value of money is not inherent in them. The value of money depends on the willingness of society to accept them as a medium of exchange.
There are enough examples of how society has lost faith in its currency, which led to monstrous consequences. The most notorious example of relatively recent times is Germany of the 1920-ies, when people literally carried money in wheelbarrows, and the prices often doubled overnight. The importance of this economic disaster cannot be overstated, as it brought to power of Hitler and eventually to the second world war.
In some societies, monetary control was associated with religion. For example, in ancient times the Jews had been doing banking in temples. The coins were minted in the temples, and then consecrated by priests, which made them acceptable to society. Roman coins were made in the temple of the goddess Juno, also called the “moneta” – the Latin root of the word “money” — money. However, even today the buildings of Central banks often resemble temples.
Based on the book by Robert W. Kolb, Ricardo J. Rodriguez “Financial institutions and markets”