The Monetary History of the United States

The Monetary History of the United States reflects the evolution of its money system over time. Initially, the economy relied on bartering and gold or silver coins. The introduction of paper money in the 19th century, along with the establishment of a central bank, the Federal Reserve, in 1913, aimed to stabilize the economy. Events like the Great Depression and inflation crises influenced monetary policy, leading to changes in interest rates and money supply. Today, the U.S. dollar is a fiat currency, meaning it’s not backed by physical commodities, but rather by the trust in the government issuing it.