The failures of fiat currency and the Federal Reserve

The Federal Reserve , or the Fed , is viewed with skepticism and criticism.

Established on December 23, 1913 , with the signing of the Federal Reserve Act by President Woodrow Wilson , the Fed was intended to provide the United States with a safe, flexible, and stable monetary and financial system.

Many economists argue that the Fed has instead introduced distortions and instability into the economy.

The Fed 's ability to act as a lender of last resort is seen as promoting moral hazard and encouraging risky behavior by financial institutions.

The Federal Reserve has been criticized for its role in major economic downturns such as the Great Depression and the Great Recession .

The post-crisis recovery has been slow and uneven, with extended periods of low economic growth and high unemployment.

The value of the U.S. dollar has declined since the abandonment of the gold standard in 1971 .

The Federal Reserve and fiat currency have played critical roles in modernizing the U.S. economy and providing flexible monetary policy tools.

Research by the Mackinac Center , the Heritage Foundation , the Cato Institute , and the Mises Institute suggests the Fed 's performance, particularly in terms of price stability and economic volatility, has not lived up to its original promise.