Difference between revisions of "Central bank"
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| − | A '''central bank''' is a country's principal monetary authority, responsible for such key functions as issuing [[currency]] and regulating the supply of credit in the [[economy]]. | + | A '''central bank''' is a country's principal monetary authority, responsible for such key functions as issuing [[currency]] and regulating the supply of credit in the [[economy]].<ref name="state.gov">http://usinfo.state.gov/products/pubs/oecon/chap12.htm</ref> |
| − | In most western democracies the central bank is independent from the government. This is designed to prevent political interference in monetary policy. Generally a government specifies with legislation the general aims of the central bank (usually maintaining a low level of inflation) but the day to day operations of it are immune from political pressure (in principle if not always in practice) | + | In most western democracies the central bank is independent from the government. This is designed to prevent political interference in monetary policy. Generally a government specifies with legislation the general aims of the central bank (usually maintaining a low level of inflation) but the day-to-day operations of it are immune from political pressure (in principle if not always in practice).<ref name="state.gov"/> |
| + | ==See also== | ||
| + | *[[Federal Reserve]] | ||
| − | == | + | ==References== |
| − | + | {{reflist}} | |
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[[Category:Economics]] | [[Category:Economics]] | ||
Latest revision as of 21:18, August 20, 2021
A central bank is a country's principal monetary authority, responsible for such key functions as issuing currency and regulating the supply of credit in the economy.[1]
In most western democracies the central bank is independent from the government. This is designed to prevent political interference in monetary policy. Generally a government specifies with legislation the general aims of the central bank (usually maintaining a low level of inflation) but the day-to-day operations of it are immune from political pressure (in principle if not always in practice).[1]