US Federal Reserve System (the FED)
is the central banking system of the United States.
Created in 1913.
conducting the US monetary policy
maintaining stability of the financial system
supervising and regulating banking institutions.
Bank of England
The Bank of England is the central bank of the UK.
Its roles and aims:
The maintenance of price stability and support of British economic policies
Stable prices and market confidence in sterling are the two main criteria for monetary stability.
The Bank aims to meet inflation targets set by the Government by adjusting interest rates
The Bank can also operate as a ‘lender of last resort’ – that is, it will extend credit when no other institution will.
European Central Bank (ECB)
was established in 1998 and is based in Frankfurt.
It is responsible for administering the monetary policy of the EU Eurozone member states.
The main objective of the ECB is to maintain price stability within the Eurozone (keep inflation low).
Bank of Japan
is Japan’s central bank and is based in Tokyo.
In 1997, the Bank was given greater independence from the government.
The bank has ignored government requests to stimulate the Japanese economy.
As a result the Japanese economy remains in a critical state.
However in August 2011, the Bank of Japan announced a scheme to offer 3 trillion yen (approximately $35 billion) in low- interest loans in an attempt to stimulate the economy.