central banks
Currency supply controllers
Central banks are government or quasi-government institutions that manage a nation's currency, money supply, and interest rates.
They serve as lenders of last resort to commercial banks and typically aim to maintain price stability and employment.
The Federal Reserve, European Central Bank, and Bank of England are prominent examples.
Central bank decisions on interest rates ripple through economies, affecting everything from mortgage rates to stock prices: Markets rallied after the central bank signaled it would pause rate hikes.
Central bank economic controls
- quantitative easingAsset purchases to boost economy
- interest ratesPrice paid for borrowing
- discount rateInterest on Fed loans
- tighteningMaking less loose
easing · rate cut · price stability · credit control · tapering · accommodative · restrictive
Emergency credit source for banks
- financial systemInstitutions managing money flow
- crisis managementHandling urgent threatening situations
- systemic riskEconomy-wide collapse potential
- stress testingEvaluating capacity under extreme conditions
payment systems · clearinghouse · solvency · capital requirements · too big to fail · bailout · circuit breaker
Paper currency notes
- coinsMetal money units
- issuanceOfficial release or distribution
- circulationMovement through a system
- legal tenderOfficially recognized payment medium
reserve currency · exchange rate · devaluation · revaluation · fiat money · digital currency · cash management · denomination
Inflation measurement abbreviation
- consumer pricesCosts paid by buyers
- price stabilityConsistent general price levels
- hyperinflationExtreme rapid price escalation
- deflationSustained decrease in prices
stagflation · purchasing power · cost of living · core inflation · cost-push · disinflation
Supervision or inadvertent omission
- supervisionOverseeing people or processes
- complianceAdhering to requirements
- licensingGranting official permission
- transparencyState of being see-through
accountability · auditing · enforcement · financial oversight
US central banking system
- Bank of EnglandUK monetary authority
- Bank of JapanJapan's central monetary authority
- IMFGlobal economic assistance organization
- governorState's chief executive
independence · mandate · FOMC
monetary policy
Central bank economic controls
- quantitative easingAsset purchases to boost economy
- interest ratesPrice paid for borrowing
- discount rateInterest on Fed loans
tightening · easing · rate cut · price stability · credit control · tapering · accommodative · restrictive
lender of last resort
Emergency credit source for banks
- financial systemInstitutions managing money flow
- crisis managementHandling urgent threatening situations
- systemic riskEconomy-wide collapse potential
stress testing · payment systems · clearinghouse · solvency · capital requirements · too big to fail · bailout · circuit breaker
banknotes
Paper currency notes
- coinsMetal money units
- issuanceOfficial release or distribution
- circulationMovement through a system
legal tender · reserve currency · exchange rate · devaluation · revaluation · fiat money · digital currency · cash management · denomination · dollarization
CPI
Inflation measurement abbreviation
- consumer pricesCosts paid by buyers
- price stabilityConsistent general price levels
- hyperinflationExtreme rapid price escalation
deflation · stagflation · purchasing power · cost of living · core inflation · cost-push · disinflation
oversight
Supervision or inadvertent omission
- supervisionOverseeing people or processes
- complianceAdhering to requirements
- licensingGranting official permission
transparency · accountability · auditing · enforcement · financial oversight
Federal Reserve
US central banking system
- Bank of EnglandUK monetary authority
- Bank of JapanJapan's central monetary authority
- IMFGlobal economic assistance organization
governor · independence · mandate · FOMC
- financial regulatorsSEC, FDIC, Fed, Federal Reserve, FSA
- monetary systemsgold standard, reserve currency, convertibility, par value, monetary policy
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- financebank, CFO, controller, finance, treasurer
- institutionsacademy, government, public hospitals, museum, public libraries
- economic historystock market crash, Industrial Revolution, trade routes, Great Depression, gold standard
central bankscommercial banks
For-profit lending institutions
retail banks · private banks · investment banks · credit unions · community banks
central bankscryptocurrency
Encrypted decentralized money
Bitcoin · free markets · gold standard · barter systems · peer-to-peer lending
central banksAustrian economics
Subjectivist, individualist economic tradition
hard money · laissez-faire economics · laissez-faire · spontaneous order · sound money
central, eccentric, concentrate, banks, concentration, centralize, centrality, centralized, centralization