Central bank
Central bank is an institution to conduct monetary policy and regulate the banking system.
Definition
According to Principles of Economics by Timothy Taylor (3rd edition),
- Central bank. An institution to conduct monetary policy and regulate the banking system.
According to Macroeconomics by Mankiw (7th edition),
- Central bank. The institution responsible for the conduct of monetary policy, such as the Federal Reserve in the United States. Classical dichotomy]]. The theoretical separation of real and nominal variables in the classical model, which implies that nominal variables do not influence real variables. (Cf. neutrality of money.)