What are Central Banks
Central Banks are authorized banks by governments to regulate the domestic economy and to implement their monetary policies. Central Banks are controlling macroeconomic issues such as the level of interest rates, inflation, unemployment, trade, and the level of the domestic money supply.
What is the Fed (Federal Reserve)
Fed is the US regulatory body / Central Bank which is responsible to control the economy and implement the federal monetary policy.
What is the European Central Bank (ECB)
European Central Bank is the regulatory body of the European Union responsible to regulate monetary policy in the economic zone of the euro.
What is the Bundesbank
Bundesbank is the Central Bank of Germany. As Germany is a member of the eurozone, Bundesbank is coordinated with the policies of the European Central Bank (ECB).
What is the Bank of Canada (BOC)
Bank of Canada is the Central Bank of Canada responsible for the Canadian monetary policy.
What is the Bank of England (BOE)
Bank of England is the Central Bank of England responsible for UK monetary policy.
What is the Bank of Japan (BOJ)
Bank of Japan is the Central Bank of Japan responsible for Japanese monetary policy.
General Related Terms
What is Interest
Interest is paid when borrowed money is used.
What is a Bank Rate
A Bank rate is the interest rate charged by the central bank of a particular country when it lends capital to the domestic commercial banks. It is used by central banks as a tool to control money supply in the economy and focus either on inflation or either on unemployment.
What are the Interbank Rates
Interbank rates are set by large international banks in order to lend capital to other international banks.
What is a Hard-Currency Policy
A monetary policy imposed by a Central Bank that aims at domestic currency appreciation, it is a “hard-currency policy”.
What is a Flexible Currency Policy
A monetary policy imposed by a Central Bank that aims at domestic currency depreciation, it is a “flexible-currency policy”.
◘ What are Central Banks