ABSTRACT
Central banks have numerous responsibilities they must manage. They serve as the primary banker for the government. They also serve as a banker for domestic banks, providing check clearing and other financial transfer services as well as lending to banks in order to stabilize credit growth and serve as a lender of last resort during bank panics. Central banks also play a key role in enforcing and monitoring bank regulation (and repression, as the case may be). Finally, central banks are responsible for helping economies achieve domestic macroeconomic objectives by using monetary policy to maintain levels of interest rates, credit growth, financial stability, and inflation that are consistent with full employment and strong output growth.
