The Role of Central Banks in an Economy: Functions and Impacts

The video explores the multifaceted role of central banks in the economy, focusing on their functions in ensuring financial and macroeconomic stability. It discusses the central banks' role as the lender of last resort, their regulatory influence, and their impact on foreign currency reserves. The video also highlights historical events like the 2008 financial crisis and regulatory changes in the UK, emphasizing the importance of central banks in maintaining economic stability.

What role do central banks play in regulating the financial sector?

What are the implications of negative deposit rates set by central banks?

Describe the relationship between central banks and government borrowing.

How do central banks influence foreign currency reserves?