What Is the Point of Central Banks’ Interventions?

  • Dimitris N. Chorafas
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)


There is a saying in the financial industry that, while central bankers have not been perfect, politicians have been worse. When governments took responsibility for decisions that should have been made by the central banks, or dominated central banking policies, they created a devastating inflation that:
  • Destroyed savings,

  • Distorted incentives, and

  • Imposed the worst sort of taxation on the whole population.


Monetary Policy Central Bank Federal Reserve Deposit Insurance Federal Fund Rate 
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.


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Copyright information

© Dimitris N. Chorafas 2012

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  • Dimitris N. Chorafas

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