Central banks are really important when it comes to managing the economy. They have a few main jobs:
Monetary Policy: Central banks change interest rates to keep prices stable. For example, in 2021, the U.S. Federal Reserve kept interest rates close to 0% to help during the COVID-19 crisis.
Currency Management: They keep an eye on how much money is in the system. In Sweden, the Riksbank tries to keep inflation at about 2% to ensure stability.
Financial Stability: Central banks help banks when they run into problems. This support was crucial during the financial crisis in 2008.
In short, central banks help shape economic growth, keep inflation in check, and support jobs by using these important tools.
Central banks are really important when it comes to managing the economy. They have a few main jobs:
Monetary Policy: Central banks change interest rates to keep prices stable. For example, in 2021, the U.S. Federal Reserve kept interest rates close to 0% to help during the COVID-19 crisis.
Currency Management: They keep an eye on how much money is in the system. In Sweden, the Riksbank tries to keep inflation at about 2% to ensure stability.
Financial Stability: Central banks help banks when they run into problems. This support was crucial during the financial crisis in 2008.
In short, central banks help shape economic growth, keep inflation in check, and support jobs by using these important tools.