Central Bank
A central bank is a financial institution that is responsible for managing a country’s currency, money supply, and interest rates. It is typically the sole authority that issues currency and regulates the money supply, and it is usually the only institution that can authorize the issuance of government bonds. Central banks also typically oversee the commercial banking system of their respective countries and serve as a lender of last resort to the banking sector during times of financial crisis.
History of Central Banks
The concept of a central bank has been around since the 17th century, when the Swedish Riksbank was established in 1668. This was followed by the Bank of England in 1694, and the Bank of France in 1800. The United States Federal Reserve was established in 1913, and since then, many other countries have established their own central banks.
Comparison of Central Banks
| Country | Central Bank | Established |
|---|---|---|
| Sweden | Riksbank | 1668 |
| England | Bank of England | 1694 |
| France | Bank of France | 1800 |
| United States | Federal Reserve | 1913 |
Summary
Central banks are financial institutions that are responsible for managing a country’s currency, money supply, and interest rates. They have been around since the 17th century, and many countries have their own central banks. For more information about central banks, you can visit the websites of the Federal Reserve, the Bank of England, the Bank of France, and the Riksbank.
See Also
- Monetary Policy
- Interest Rates
- Currency Exchange
- Money Supply
- Inflation
- Deflation
- Banking System
- Financial Crisis
- Government Bonds
- Central Bank Independence
