What is a central bank's role in national politics? 🔊
A central bank plays a crucial role in national politics by managing a country’s monetary policy, regulating financial institutions, and ensuring economic stability. It is responsible for controlling inflation and influencing interest rates, impacting everything from consumer spending to government borrowing. By intervening in the economy, central banks aim to promote sustainable growth and stability. Their decisions can significantly affect political agendas, especially in times of economic crisis, where they may implement strategies like quantitative easing to stimulate growth.
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