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.)