This chapter highlights important events in the nation’s monetary and financial history. Learn about the founding, operations, and the closing of the first Bank of the United States. Find out why the First Bank’s successor, the second Bank of the United States, sparked a vicious debate between President Andrew Jackson and Nicholas Biddle, president of the First Bank. Follow the financial turmoil that occurred in the period between the closing of the Second Bank in 1836 and the founding of the Federal Reserve System in 1913. Learn why the actions of the Fed exacerbated the Great Depression and why the Fed’s agreement with the Treasury Department in 1951 restored the Fed’s independence in regard to monetary policy. Finally, find out what lessons the Federal Reserve learned during the period of stagflation in the 1970s and how the Fed responded to the financial crisis of 2007–2009.