The Central Bank and Monetary Policy

The origin and use of the term “central bank” dates back, in academic literature (Wicksell, Keynes), to the early 1900s. However, the use of the term by dealers, politicians and in legislation is much more recent. A central bank is defined as the “bank of banks”, the “Treasury bank” and finally as the “bank for the economy’s external sector”, i.e., the institution charged with looking after a country’s foreign currency reserves. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.