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A '''central bank''' is a country's principal monetary authority, responsible for such key functions as issuing [[currency]] and regulating the supply of credit in the [[economy]].<ref name="state.gov">http://usinfo.state.gov/products/pubs/oecon/chap12.htm</ref>

A '''central bank''' is a country's principal monetary authority, responsible for such key functions as issuing [[currency]] and regulating the supply of credit in the [[economy]].<ref name="state.gov">http://usinfo.state.gov/products/pubs/oecon/chap12.htm</ref>

In most western democracies the central bank is independent from the government.  This is designed to prevent political interference in monetary policy.  Generally a government specifies with legislation the general aims of the central bank (usually maintaining a low level of inflation) but the day-to-day operations of it are immune from political pressure (in principle if not always in practice).<ref name="state.gov">http://usinfo.state.gov/products/pubs/oecon/chap12.htm</ref>

In most western democracies the central bank is independent from the government.  This is designed to prevent political interference in monetary policy.  Generally a government specifies with legislation the general aims of the central bank (usually maintaining a low level of inflation) but the day-to-day operations of it are immune from political pressure (in principle if not always in practice).<ref name="state.gov"/>

==References==

==References==

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[[Category:Economics]]

[[Category:Economics]]