A central bank issues a country's base money and steers the price of credit by setting a policy interest rate. Most also act as "lender of last resort" for banks in a crisis.
Origins
- Sweden's Riksbank (1668) calls itself the world's oldest central bank.
- The Bank of England was founded in 1694 as banker to the government.
- The U.S. Federal Reserve was created by law on 23 December 1913.
Today
Most central banks target low, positive inflation. Norges Bank's target is consumer price inflation "close to 2 percent over time"; the Fed and ECB also aim for 2%.
Bitcoin has no central bank. Its supply is set by code that every full node enforces.