Rent-Seeking Origins of Central Banks: The Case of the Federal Reserve System
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F12%3A00186656" target="_blank" >RIV/62156489:43110/12:00186656 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Rent-Seeking Origins of Central Banks: The Case of the Federal Reserve System
Original language description
What were the purposes for establishment of central banks? Central banks are historically relatively young organizations. Their main purposes are to regulate money supply through interest rates, regulate the banking sector and act as a lender of last resort to banking sector during the time of financial crises. Historical evidence suggests that in the second half of 19th century in the USA private clearing houses were able to provide the banking sector with similar services. In this paper, we follow such evidence and provide Public Choice explanation for establishment of central banks. On the historical example of establishment of the Federal Reserve System we show that the motivation for establishment of the Federal Reserve System might be rather political instead of economic. More precisely, we argue that the Federal Reserve System was established to allow the American Federal Government to control rent-distribution through money supply control and banking sector regulation.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
AH - Economics
OECD FORD branch
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Result continuities
Project
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Continuities
Z - Vyzkumny zamer (s odkazem do CEZ)
Others
Publication year
2012
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Czech and World Economies After the Global Finacial Crisis: The Collection of the International Scientific Conference
ISBN
978-80-7408-062-3
ISSN
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e-ISSN
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Number of pages
18
Pages from-to
1-18
Publisher name
University of Finance and Administ
Place of publication
Prague
Event location
Prague
Event date
Nov 24, 2011
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
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