Central Bank

Reuters  Oct 14  Comment 
Singapore's central bank on Friday held policy steady despite a surprisingly sharp economic contraction in the third quarter, but analysts say the weak inflation and growth outlook will likely force policymakers to ease further.
MarketWatch  Oct 13  Comment 
Gerald Hassell, the chairman and chief executive officer of the Bank of New York Mellon Corp. tells MarketWatch that central banks are limiting economic activity by keeping interest rates at low levels.
Forbes  Oct 12  Comment 
Central banks are signaling their interest in putting the currencies we use everyday on blockchains. Here's what it could mean for our economies, future financial crises and how we bank.
New York Times  Oct 12  Comment 
The Bank of Japan’s governor said he was prepared to ease again if needed, including pushing short-term interest rates further into negative territory.
New York Times  Oct 11  Comment 
Central banks view the technology behind the virtual currency as a possible way to compete and record transactions, or to issue their own currencies.
MarketWatch  Oct 11  Comment 
Singapore’s central bank on Tuesday said it would withdraw the license of a Swiss private bank operating in the city-state and fine two large banks as part of a wide-ranging investigation into fund flows related to Malaysian state fund 1Malaysia...
Reuters  Oct 10  Comment 
Central banks' repeated warnings that there are limits to what they can do to bolster the sputtering world economy could suggest they are about to pull back and pass the baton to governments.
MarketWatch  Oct 8  Comment 
The global financial elite has soured on global central bank policy, believing that it’s now counterproductive, doing more harm than good.
Euromoney  Oct 7  Comment 
Pakistan’s central bank governor Ashraf Wathra has played a crucial role in boosting the country’s financial credibility among the international community. Locals now hope to reap the benefits in both banking and capital markets.
Forbes  Oct 6  Comment 
Central banks should either raise interest rates or risk the destruction of capitalist institutions.



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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