The Federal Reserve Act did not create entirely new plumbing for the monetary system but rather added a new small pipe alongside existing ones—banks could still hold gold, greenbacks, and silver in addition to deposit balances with reserve banks, making the Fed a marginal addition to the monetary infrastructure that became increasingly large over time.

factualpending

Speaker

Dr. Jane Nodell

Evidence Quote

the FED under the Federal Reserve Act the banks can would continue to hold gold and greenbacks and silver...didn't tear up the pipes it just added a slightly added a a new pipe that was small but it became increasingly large

Source

A Masterclass In Central Banking | Professor Jane KnodellForward Guidance
Created: 8/11/2026, 1:31:04 AM

My Notes

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