After the Revolutionary War, many of the nation's citizens were heavily in debt and there was widespread economic disruption. The country needed an economic overhaul and the leaders of the new country would have to decide how to proceed to ensure that the new country did not collapse. After two failed attempts to create a national banking system, the Federal Reserve was created by the Federal Reserve Act of 1913. Since its creation, the Federal Reserve has evolved into a central banking system that grows with the country. The Federal Reserve System provides this country with a central bank capable of pursuing coherent monetary policies. My goal in this article is to help the reader understand why the Federal Reserve System was created, how it has evolved since its inception, and how it operates today. To achieve this goal, I have organized my article into three main sections: which have subsections. In the first section, I explain why the Federal Reserve System was necessary and the banks that preceded it. In the second section, I discuss the creation of the Federal Reserve System, the key laws that affected it, and the evolution of its structure. I conclude my article with a third section that explores the responsibility of the Federal Reserve System as the monetary policy authority of the United States. NEED FOR A NATIONAL BANK After the Revolutionary War, the United States was in great need of a financial structure. The war had caused economic disruption throughout the new country and the new country needed to restore trade, repay the war debt, restore the value of the currency, and reduce inflation. Alexander Hamilton, the first Secretary of the Treasury, decided to research the economic structure...... middle of paper ... as more than 75 years later, before making his final attempt, which is the system we currently have. place today. The Federal Reserve System has made many changes since its first implementation, but it remains the monetary policy authority it was created to be. Works Cited “The Structure of the Federal Reserve System.” The Federal Reserve System Online. US Federal Government, July 8, 2003. Web. September 17, 2011. Todd, Tim. The balance of power. First of all. Kansas City: Federal Reserve Bank, 2009. 1-2. Print.United States. First Bank of the United States. Philadelphia: Federal Reserve Bank of Philadelphia, 2009. Web.United States. History of central banks. Philadelphia: Federal Reserve Bank of Philadelphia, 2010. Web.United States. Second Bank of the United States. Philadelphia: Federal Reserve Bank of Philadelphia, 2010. Web.