Throughout American history, the United States has been associated with economic strength and unconventional financial systems. American founding fathers took inspiration from former economic powers, including the Dutch, Britain, and France, while also innovating their own systems. Richard Sylla and Deirdre McCloskey present their contrasting opinions on what caused the unusual improvement in the United States and what models have enabled that improvement. Although financial institutions play a role in ensuring the opportunity for people to pursue their ideas, their main importance lies in constructing a stable base for successful economies to grow and expand. Richard Sylla’s explanation for the rapid economic improvement in the United States…show more content… Richard Sylla expands upon his ideas in “Financial Systems and Economic Modernization.” In this piece he states that the key component of the financial revolution, is that it must take place before the country becomes a leading economy. This financial revolution should put the six key components into place, which are sound public finances and public debt management, stable monetary and payments arrangements, a sound banking system, an effective central bank, good securities market for debt, equity, and money-market instruments, and sound insurance companies. These six components create strong financial systems, generating a solid base for a country. The third element that Sylla finds to be crucial in improvement in the economy is effective leadership. For example in the United States, Alexander Hamilton, the first secretary of the Treasury, was able to quickly turn the United States into an economic power through his strong leadership. Alexander Hamilton describes how leaders should act: “As the general marches at the head of his troops, so ought wise politicians … march at the head of affairs; insomuch that they ought not to wait the event to know what measures
