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agii asked in Social ScienceEconomics · 1 decade ago

why was the US one of the last of the major industrialized countries to have a central bank?

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  • 1 decade ago
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    Have you bothered checking your facts? Have you bothered thinking about this question at all?

    1. The U.S. created its first central bank, the First Bank of the United States in 1791:

    http://en.wikipedia.org/wiki/First_Bank_of_the_Uni...

    This was before Germany even existed as a Confederation, much less a country:

    http://en.wikipedia.org/wiki/History_of_Germany#Ge...

    This was before Italy became a single country (1861)

    http://en.wikipedia.org/wiki/History_of_Italy

    This was before the French central bank was created by Napoleon Bonaparte (1800)

    http://en.wikipedia.org/wiki/Banque_de_France

    This was before the dominion of Canada was created and long before it became a separate country.

    The only industrialized country to have a central bank before the U.S. was England.

    2. The Second Bank of the U.S. was created in 1816. This was still before most of the other central banks in the industrialized world.

    3. The central bank for France, Germany, the Netherlands, Italy, Austria, etc. is now the European Central Bank.

    http://en.wikipedia.org/wiki/European_Central_Bank

    It was established in 1998, well after the Federal Reserve System in the U.S. (1913)

    So if we look at the G-7 as the major industrialized countries:

    http://en.wikipedia.org/wiki/G7

    United Kingdom had its central bank first

    Japan had it next

    Then came the U.S.

    Then came Canada (1934)

    Then came France, Germany, and Italy

    So whether you compare the age of the current central bank for each country, or the age of the first central bank for each, the U.S. is one of the earlier ones, not one of the later ones.

    Of course, if you want to pick and choose your data, you can "prove" anything.

  • 1 decade ago

    The common belief at the time of the American revolution was that a centralized banking system opened government up to undue manipulation. This attitude remained quite prevalent well into the 20th century and still has many adherents today.

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