Should the Federal Reserve stay or should it go?
The role of the Federal Reserve has definitely been in the spotlight since the recent financial crisis and with the recent installation of the new fed chair, Jerome Powell.
Dr. Allan Jenkins at the University of Nebraska at Kearney tells NTV News the central bank plays a vital role since without it, we'd have to worry about economic stability.
“We would have to worry about the stability of our entire financial system,” Jenkins said. “Who would decide what is currency then? If you look at the top of a dollar bill it says Federal Reserve Note, it's not backed by gold or silver. It's only backed by the willingness to exchange a different piece of paper for the piece of paper you have. And it works because stores accept that and other people accept that. Butt to: Money works because people have confidence that the money has value.”
Dr. Mark Thornton, Senior Fellow of Economics at the Ludwig von Mises Institute supports a return to the gold standard.
Thornton said ending the Federal Reserve would be a step in the right direction.
"The monetary policy could be run by the U.S. Treasury and then the American people would have a better sense of who's causing these problems. And once that occurred politicians might oversee a better monetary policy,” Thornton said. “But you know, the Austrians would like to see the Federal Reserve eliminated and a return to the Gold Standard."