Central bank

central bankscentral bankingcentral banking systemreserve bankbank of issuemonetary authorityCentralcentral bankersIssuing authoritybase rate
A central bank, reserve bank, or monetary authority is an institution that manages the currency, money supply, and interest rates of a state or formal monetary union, and oversees their commercial banking system.wikipedia
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Money supply

supply of moneyM2M1
A central bank, reserve bank, or monetary authority is an institution that manages the currency, money supply, and interest rates of a state or formal monetary union,
Money supply data is recorded and published, usually by the government or the central bank of the country.

Gold reserve

gold reservesofficial gold reservesgold
A gold reserve was the gold held by a national central bank, intended mainly as a guarantee to redeem promises to pay depositors, note holders (e.g. paper money), or trading peers, during the eras of the gold standard, and also as a store of value, or to support the value of the national currency.

Lender of last resort

Emergency Liquidity Assistancelenders-of-last-resortlenders of last resort
A central bank also acts as a lender of last resort to the banking sector during times of financial crisis.
Since the beginning of the 20th century, most central banks have been providers of lender of last resort facilities, and their functions usually also include ensuring liquidity in the financial market in general.

Interest rate

interest ratesdiscount rateinterest
A central bank, reserve bank, or monetary authority is an institution that manages the currency, money supply, and interest rates of a state or formal monetary union,
The central banks of countries generally tend to reduce interest rates when they wish to increase investment and consumption in the country's economy.

European Central Bank

ECBThe European Central Bankmonetary policy
The European Central Bank remits its interest income to the central banks of the member countries of the European Union. The European Central Bank and The Bank of Japan whose economies are in or close to deflation, continue quantitative easing – buying securities to encourage more lending.
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone, which comprises 19 member states of the European Union and is one of the largest monetary areas in the world.

Inflation

inflation rateprice inflationfood inflation
Inflation is defined either as the devaluation of a currency or equivalently the rise of prices relative to a currency.
Generally, these monetary authorities are the central banks that control monetary policy through the setting of interest rates, through open market operations, and through the setting of banking reserve requirements.

Bulgarian National Bank

National Bank of Bulgariacentral bankCentral Bank of Bulgaria
In the latter case, exemplified by the Bulgarian National Bank, Hong Kong and Latvia (until 2014), the local currency is backed at a fixed rate by the central bank's holdings of a foreign currency.
The Bulgarian National Bank is the central bank of the Republic of Bulgaria with its headquarters in Sofia.

Foreign exchange market

foreign exchangeForexcurrency exchange
These interventions can also influence the foreign exchange market and thus the exchange rate.

Reserve requirement

reserve requirementsreserve ratiocash reserve ratio
The main monetary policy instruments available to central banks are open market operation, bank reserve requirement, interest rate policy, re-lending and re-discount (including using the term repurchase market), and credit policy (often coordinated with trade policy).
The reserve requirement (or cash reserve ratio) is a central bank regulation employed by most, but not all, of the world's central banks, that sets the minimum amount of reserves that must be held by a commercial bank.

Open market operation

open market operationsopen-market operationsbuying operations
The main monetary policy instruments available to central banks are open market operation, bank reserve requirement, interest rate policy, re-lending and re-discount (including using the term repurchase market), and credit policy (often coordinated with trade policy).
An open market operation (OMO) is an activity by a central bank to give (or take) liquidity in its currency to (or from) a bank or a group of banks.

Bank run

runrun on the bankbanking crisis
Most central banks also have supervisory and regulatory powers to ensure the solvency of member institutions, to prevent bank runs, and to discourage reckless or fraudulent behavior by member banks.
They have included a higher reserve requirement (requiring banks to keep more of their reserves as cash), government bailouts of banks, supervision and regulation of commercial banks, the organization of central banks that act as a lender of last resort, the protection of deposit insurance systems such as the U.S. Federal Deposit Insurance Corporation, and after a run has started, a temporary suspension of withdrawals.

Bank of Canada

central bankCanadaCanada's Currency Museum
As an example of how this functions, the Bank of Canada sets a target overnight rate, and a band of plus or minus 0.25%.
The Bank of Canada (or BoC) (Banque du Canada) is a Crown corporation and Canada's central bank.

Keynesian economics

KeynesianKeynesianismKeynesian theory
Since inflation lowers real wages, Keynesians view inflation as the solution to involuntary unemployment.
Keynesian economists generally argue that as aggregate demand is volatile and unstable, a market economy often experiences inefficient macroeconomic outcomes in the form of economic recessions (when demand is low) and inflation (when demand is high), and that these can be mitigated by economic policy responses, in particular, monetary policy actions by the central bank and fiscal policy actions by the government, which can help stabilize output over the business cycle.

Monetary base

base moneycentral bank moneyhigh-powered money
In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base in the state, and also generally controls the printing/coining of the national currency, which serves as the state's legal tender.

Commercial bank

corporate bankingcommercial bankingcommercial banks
In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base in the state, and also generally controls the printing/coining of the national currency, which serves as the state's legal tender. and oversees their commercial banking system.
In most countries commercial banks are heavily regulated and this is typically done by a country's central bank.

Seigniorage

seignorageinflation taxseigneurage
This income, derived from the power to issue currency, is referred to as seigniorage, and usually belongs to the national government.
Under the rules governing the monetary operations of major central banks (including the Federal Reserve), seigniorage on banknotes is the interest payments received by central banks on the total amount of currency issued.

Macroeconomic policy instruments

instrumentsmacroeconomic policiesmacroeconomic policy tools
The main monetary policy instruments available to central banks are open market operation, bank reserve requirement, interest rate policy, re-lending and re-discount (including using the term repurchase market), and credit policy (often coordinated with trade policy).
Monetary policy is conducted by the central bank of a country (such as the Federal Reserve in the U.S.) or of a supranational region (such as the Euro zone).

People's Bank of China

PBOCPeople’s Bank of Chinacentral bank
For example, the People's Bank of China and the Bank of Japan have on occasion bought several hundred billions of U.S. Treasuries, presumably in order to stop the decline of the U.S. dollar versus the renminbi and the yen.
The People's Bank of China (PBC or PBOC; ) is the central bank of the People's Republic of China responsible for carrying out monetary policy and regulation of financial institutions in mainland China, as determined by People's Bank Law and Commercial Bank Law.

Monetary policy

monetarymonetary policiesexpansionary monetary policy
The main monetary policy instruments available to central banks are open market operation, bank reserve requirement, interest rate policy, re-lending and re-discount (including using the term repurchase market), and credit policy (often coordinated with trade policy). Central banks implement a country's chosen monetary policy.
The central bank influences interest rates by expanding or contracting the monetary base, which consists of currency in circulation and banks' reserves on deposit at the central bank.

Discount window

discount ratediscount ratesliquidity support facility
The discount window is an instrument of monetary policy (usually controlled by central banks) that allows eligible institutions to borrow money from the central bank, usually on a short-term basis, to meet temporary shortages of liquidity caused by internal or external disruptions.

Overnight rate

overnight interest rateovernightovernight capital cost
As an example of how this functions, the Bank of Canada sets a target overnight rate, and a band of plus or minus 0.25%.
In some countries (the United States of America, for example), the overnight rate may be the rate targeted by the central bank to influence monetary policy.

Money creation

credit creationprinting moneycreate money
Each time it buys securities (such as a government bond or treasury bill), it in effect creates money.
The authority through which monetary policy is conducted is the central bank of the nation.

Excess reserves

interest on excess reservesexcess of reserve requirementsexcess reserve
In banking, excess reserves are bank reserves in excess of a reserve requirement set by a central bank.

Quantitative easing

credit easingQEQE3
The European Central Bank and The Bank of Japan whose economies are in or close to deflation, continue quantitative easing – buying securities to encourage more lending.
Quantitative easing (QE), also known as large-scale asset purchases, is a monetary policy whereby a central bank buys predetermined amounts of government bonds or other financial assets in order to inject liquidity directly into the economy.

Bank for International Settlements

BISBank of International SettlementsBank for International Settlements (BIS)
For international banks, including the 55 member central banks of the Bank for International Settlements, the threshold is 8% (see the Basel Capital Accords) of risk-adjusted assets, whereby certain assets (such as government bonds) are considered to have lower risk and are either partially or fully excluded from total assets for the purposes of calculating capital adequacy.
The Bank for International Settlements (BIS) is an international financial institution owned by central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks".