Author(s): Jeremy Chang
Central banks play a crucial role in modern economies by using monetary policy to manage inflation, support employment, and promote stable economic growth. Through instruments such as interest rate adjustments, open market operations, and reserve requirements, central banks influence money supply and credit availability. This article explores how central banks maintain a delicate balance between curbing inflation and fostering growth, examines the tools at their disposal, and analyzes the challenges they face in a complex global environment.