What role do global central banks play in the economy?

What role do global central banks play in the economy?

Global central banks manage a country's currency, money supply, and interest rates, influencing economic stability.

How do they respond to inflation?

They typically raise interest rates to reduce money supply and curb inflation, making borrowing more expensive.

Can you give examples of major central banks?

Sure! Major central banks include the Federal Reserve (USA), European Central Bank (EU), and Bank of Japan.

What is quantitative easing?

Quantitative easing is a monetary policy where central banks buy securities to increase money supply and lower interest rates.

How do central banks influence employment?

By adjusting interest rates and controlling inflation, central banks can stimulate or cool down economic activity, impacting employment.