Central Banks and Their Powerful Tools: How these banks shape today’s world

What is a Central Bank?

A central bank is a national institution responsible for managing a country’s currency, money supply, and interest rates. It acts as a bank for the government and commercial banks, playing a critical role in overseeing monetary policy to achieve economic stability. Central banks are independent or semi-independent from government influence to ensure that their policies focus on long-term financial stability rather than short-term political goals.

The primary goals of central banks are to:
1. Maintain price stability (control inflation).
2. Promote high employment.
3. Ensure the stability of the financial system.
4. Supervise and regulate the banking industry.
5. Act as a lender of last resort during financial crises.

The History of Central Banks

The concept of central banking dates back several centuries. One of the earliest and most influential central banks is the **Bank of England**…