Central Bank

Quasi-Government institution that manages a countries currency, money supply and interest rates.

Central Bank Interventions
  • There is a broad belief that central banks are in control of the economy and the markets - they can control things by intervening
  • Others believe that this is a misconception
  • Central banks can be overwhelmend by major crisis
  • The actions central banks take can often only delay a crisis, ultimately making it worse.

Central Bank Concerns

  • Healthy debt markets are a key concern of central banks
  • Without access to debt, many countries, corporations, and consumers would go bust quickly