The financial system of the USA

One of the functions of state economic policy is to support the financial stability of the country. Before the crisis of 2009, this function in the US was carried out by special financial supervision bodies, each with its own influence in a separate state. A consolidated, integrated approach to this issue was the main topic of Obama's financial reform plan , which was promulgated in the summer of 2009. Bills of financial importance, continuing the development of reforms, were developed in 2010.

The financial system of the United States is considered an accurate reflection of the state structure and power. As in many developed countries, it consists of budgets of various levels and bodies that control the revenue and expenditure part of them.

The US financial system should perform three basic functions:

The first is the government apparatus, the courts or the army.

The next function is the redistribution of income between certain segments of the population or territories, and the prerequisite for this was the financial system of the United States. This function favorably affects the provision of a comfortable social and economic climate in the country.

And, finally, the third function developed in the 30s of the 20th century after the economic crisis. Its main purpose is to use budgetary funds as a tool to stimulate the growth of the state's economy and support the development of the business sector. The modern financial system of the USA shows that in an efficient economy, the state should play the role of a reliable and natural partner, and not a force opposing the business sector.

The US budget system has its own qualitative features. So, the principle of "budgetary federalism" is traced. In other words, there is an effective interaction of three state systems - income, expenditure and relations between budgets.

The system of state revenues consists of a combination of tax and non-tax revenues that operate in the country and will be able to provide public expenditure, and it is necessary to include methods for collecting revenues and regulating budget revenues in legislation. The state system of expenses consists of the preparation of the draft budget with subsequent revision in the executive bodies, further approval (adoption) in the Congress and mandatory control over its execution.

The above-mentioned principle of "fiscal federalism" presupposes that each level of government has its own sources of revenue, but at the same time, there is a possibility of allocations from the higher-level budget, if necessary.

The US budget system is inextricably linked with fiscal policy. This is expressed in the development and adoption of decisions on the conduct of economic activities with mandatory linkage to the budgetary policy of the state. And on the contrary - all budgetary activities of the country are developed by specialists and implemented in the direction of the state general economic strategy.

The US monetary system is part of the financial system of the state and is characterized by the regulation of its central bank in America and the Ministry of Finance.

In the 70s of the 20th century, the main task of the reserve federal system was to maintain inflation at a low level, which ensured the stability of monetary circulation in the country and the strengthening of the dollar in the form of a reserve currency.

Since 1981, the government began to tightly regulate monetary circulation by limiting the money supply and increasing interest rates. Thanks to these measures, the inflation rate was reduced and the dollar strengthened by its appreciation in comparison with other currencies.