Central Bank

newratings.com  May 6  Comment 
WARSAW (dpa-AFX) - Poland's central bank left its key interest rate unchanged at a record low on Friday amid the lack of inflationary pressures. The Monetary Policy Council of the National Bank of Poland decided to retain the key reference...
MarketWatch  May 4  Comment 
The head of the trading desk at the New York Fed said Wednesday that the central bank’s new policy tools have worked as well as could be expected.
Reuters  May 3  Comment 
South Africa's central bank is not comfortable with private equity firms pursuing any of the major banks up for sale in Africa's most advanced economy, its deputy governor said on...
The Times of India  Apr 29  Comment 
Moscow, April 29, 2016 (AFP) -Russia's central bank on Friday kept its key rate unchanged at 11 percent as inflation risks remain high but said it may cut it in the future as inflation declines.
Reuters  Apr 29  Comment 
Central banks in Asia's emerging markets are introducing new policy tools to get lenders to cut borrowing costs and move credit more quickly through their slowing economies.
Financial Times  Apr 28  Comment 
Closer supervision may help industry fill gaps left by struggling state-owned banks
SeekingAlpha  Apr 28  Comment 
Wall Street Journal  Apr 27  Comment 
Central banks struggling with low inflation do have a tool to combat it where they print money to finance increased government deficits. But, Greg Ip writes, central banks don’t want to erase the line between monetary and fiscal policy.
The Hindu Business Line  Apr 26  Comment 
World stocks climbed for the first time in four days on Tuesday and a weaker dollar helped oil prices gain too, as investors fine-tuned their expectations for monetary policy meetings in the United S...



Central banks have emerged over the past four centuries when mankind moved from a system of gold or silver backed currencies to private issuers to fiat money. The first central bank in the world was the Swedish Riksbank, founded in 1668.

Scottish businessman William Paterson founded the Bank of England in 1694 on request of the British government to finance a war.

The First Bank of the USA was founded in 1791 and had a 20-year charter. It was however revived again in 1816 and gave birth to the Second Bank of the United States. This desperate move to stabilize the currency by US president James Madison was later revoked by US president Andrew Jackson who withdrew the bank's Federal Charter in 1836. In 1841 the Second Bank of the United States ceased all operations.

The history of central banking came alive again in 1913 with the constitutionally disputed foundation of the Federal Reserve.

As nearly all currencies in the world have transformed into fiat money over the past 4 centuries, i.e. the notes mandated to be used by government fiat, all countries have some sort of central bank that is responsible for keeping inflation low and provide a money supply that does not overshoot economic growth too much. Other tasks vary widely from country to country.

Political pressure has often led to inflation as rulers want to finance their activities with the in the first place seemingly cheap money.Image:Example.jpg

Central Banking

Central banks primarily purchase short-term debt issued by the governments of the countries in which they serve. Sometimes they've been used as a political piggy bank with the central banks buying riskier investments causing huge losses and inflation if the bank's government doesn't bail them out since the bank has no assets to sell to counter inflation, leaving to many banknotes in circulation.


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