Central Bank

Definition of Central bank

A central bank, reserve bank (also known as a monetary authority) is the management authority that operates the state’s currency stability, low inflation, full implement and interest rates and money supply. Central banks are also responsible for managing the commercial banking system of their relevant countries.

Books on Central bank

Book 1 –

Central Banking in Theory and Practice By Alan S. Blinder (published by MIT Press, 1999)

Book 2 –

The Central Bank and the Financial System By Charles Albert Eric Goodhart (published by MIT Press, 1995)

How Central Bank works?

For example, the central banking system in the U.S. is recognized as the Federal Reserve System (or ‘The Fed’), which includes 12 regional Federal Reserve Banks situated in major cities around the country. The prior task of this organization is to oversee and regulates banks, practice of monetary policy by buying and selling U. S. Treasury bonds and also controls interest rates.

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