The Structure of the Federal Reserve Banks and Board of Governors - Coursework Example

The system helps the government by keeping an eye on issues that are related to decision-making. The action of the board of governors and the operations of the banks are governed by laws to forestall any cases of irregularity. One of the recommendations is to improve on marketplace and technological developments such as electronic banking. This will help in coping with the increased competition that has been experienced by the private sector (the United States, 1996).

Independence of the Federal Reserve System

The Federal Reserve System ought to be independent of any political influence when undertaking to implement and design its monetary policy. Essentially speaking, economic decisions and measures cannot be left in the hands of the political elite such as the President and the US Congress. For economic development to be spurred and its effects to trickle down to the common man, highly educated and specialized economists who exude substantial experience must be engaged. This will guarantee sound decision-making and the creation of monetary policies that benefit the common man through extensive research and periodical economic evaluation and analysis.