Money, U.S. Monetary Policy, and Catholic Social Teaching

The Popes have directly and indirectly taught that money ought to serve man and be used for the common good. They have also condemned the idolatry of money and warned those who manage it for society to do so responsibly and according to the principle of subsidiarity. Money is the "life-blood" of the market economy, yet its creation and distribution is widely misunderstood in the United States. The Federal Reserve has less control over the money supply than is commonly thought because of their commitment to provide an elastic currency, and the federal government must maintain monetary sovereignty in order to pursue the goals of full employment and price stability. Though an elastic currency and monetary sovereignty are potentially inconsistent with Catholic teaching, they are not inherently so, as long as those with power act for the good of all.