13.1 America’s Central Banks #Notebook

13.1 America’s Central Banks #Notebook

Central banks generally charged with:

Controlling the money supply

Stabilizing the major prices

Improving economic output and employment

Regulating financial institutions

Stabilizing the economy

Providing a payments system

Central banks can be useful as an official systemwide lender of last resort, to increase the money supply or reduce the interest rates during a crisis period. 

Episodes in the history of the US convinced many Americans that the time had come to create a new central bank lest private financial institutions hold too much power.