Abstract
The structure of the Federal Reserve System (Federal Reserve or Fed) is quite unusual and to understand why it is unusual we must analyze its history. The Fed
was created in 1913 with the enactment of the Federal Reserve Act, and was largely a response to a series of financial crises, particularly a severe crisis in
1907. There were severe resistances to the establishment of this central bank in America, mainly due to a constant fixation in American mentality and American political tradition, namely the fear of centralized fear. This is why concerning American politics, the functioning of institutions is characterized by states' rights and by checks and balances (the means used to restrict or to limit the power of central government). However, the fear of central power isn't the only element to explain the resistance to the establishment of a central bank in America. Another source of resistance was the traditional American distrust of money interest.
Before 1913, there were two experiments which have failed. The first was the creation of the bank of America, but unfortunately this bank collapsed in 1811 and the second experiment was the charter of the second bank of America which was vetoed in 1832 by President Andrew Jackson.
