Quotes & Sayings About Central Banks

So: if the chronic inflation undergone by Americans, and in almost every other country, is caused by the continuing creation of new money, and if in each country its governmental "Central Bank" (in the United States, the Federal Reserve) is the sole monopoly source and creator of all money, who then is responsible for the blight of inflation? Who except the very institution that is solely empowered to create money, that is, the Fed (and the Bank of England, and the Bank of Italy, and other central banks) itself? — Murray Rothbard

Banks are concerned the central bank is imposing too many regulations. If the trend continues, we'll swing to heavy regulation. We need to have balanced regulation to encourage the economy. — Abdul Aziz Al Ghurair

In the old days we were the challenger brand competing against the big banks, but today I go round the world and I sit with governors of central banks and finance ministers and, in some cases, prime ministers. They all know Travelex. We are regarded as the establishment - the world's largest retailer of foreign currency. — Lloyd Dorfman

For small community banks and credit unions, like those in Central and Northern Wisconsin, the hundreds of new rules will require an estimated 2,260,631 labor hours just for compliance. Those are hours that your local bank or credit union will spend dealing with some Washington bureaucrat instead of focusing on the needs of customers like you. — Sean Duffy

Banks hold deposits and savings entrusted to them by individuals, by businesses, by governments and by central banks. They put that money to work, helping people to buy homes, for example, or lending to businesses to invest in expansion. — Bob Diamond

Central banks have gotten out of the central banking business and into the central planning business, meaning that they are devoted to raising up-if they can-economic growth and employment through the dubious means of suppressing interest rates and printing money. The nice thing about gold is that you can't print it. — James Grant

Central banks need to be able to buy bonds if there are short-term malfunctions of the markets. But buying bonds without differentiation and without limits would be very problematic. — Lars Feld

Business cycles lengthened greatly during the 20th century, as central banks learned to manage national economies by raising and lowering interest rates. — Alex Berenson

The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered. — Thomas Jefferson

Central banks don't have divine wisdom. They try to do the best analysis they can and must be prepared to stand or fall by the quality of that analysis. — Mary Kay Ash

After a long period in which the desired direction for inflation was always downward, the industrialized world's central banks must today try to avoid major changes in the inflation rate in either direction. — Ben Bernanke

We have left behind the rosy agrarian rhetoric and slaveholding reality of Jeffersonian democracy and reside in the bustling world of trade, industry, stock markets, and banks that Hamilton envisioned. (Hamilton's staunch abolitionism formed an integral feature of this economic vision.) He has also emerged as the uncontested visionary in anticipating the shape and powers of the federal government. At a time when Jefferson and Madison celebrated legislative power as the purest expression of the popular will, Hamilton argued for a dynamic executive branch and an independent judiciary, along with a professional military, a central bank, and an advanced financial system. Today, we are indisputably the heirs to Hamilton's America, and to repudiate his legacy is, in many ways, to repudiate the modern world. — Ron Chernow

More paper money cannot make a society richer, of course - it is just more printed paper. Otherwise, why is it that there are still poor countries and poor people around? But more money makes its monopolistic producer (the central bank) and its earliest recipients (the government and big, government-connected banks and their major clients) richer at the expense of making the money's late and latest receivers poorer. — Hans-Hermann Hoppe

Those retrospectively blessed dozen years lasted from the chilly, fevered Central European night of November 9th, 1989 to that bright morning on the Eastern Seaboard of American of September 11th, 2001. One event symbolized the lifted threat of a worldwide nuclear holocaust,
something which had been hanging over humanity for nearly forty years, and so ended an age of idiocy. The other ushered in a new one. — Iain Banks

In 1977, when I started my first job at the Federal Reserve Board as a staff economist in the Division of International Finance, it was an article of faith in central banking that secrecy about monetary policy decisions was the best policy: Central banks, as a rule, did not discuss these decisions, let alone their future policy intentions. — Janet Yellen

Political risk is hard to manage because so much comes down to the personal choices of policymakers, whether prime ministers or heads of central banks. — James Surowiecki

I actually think that the economy has got some positives. It's got the market. It's got consumer confidence and it's got banks throwing - I mean central bankers throwing money at it around the world. — Jack Welch

Inflation is always and everywhere a monetary phenomenon. — Milton Friedman

What central banks can control is a base and one way they can control the base is via manipulating a particular interest rate, such as a Federal Funds rate, the overnight rate at which banks lend to one another. But they use that control to control what happens to the quantity of money. There is no disagreement. — Milton Friedman

The Federal Reserve, like other central banks, wields powerful tools; democratic accountability requires that the public be able to see how and for what purposes those tools are being used. — Ben Bernanke

The central character is an incomplete package of yearning that takes the length of the novel to complete. Completion, though, is not to be confused with perfection. — Patricia Hickman

Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise. — Alan Greenspan

Facing the sagging middle when writing a novel, while inevitable, may be
overcome by pre-planning. I divide my collection of proposed scenes into three acts, each scene inciting tension that builds toward the final crisis in Act Three. If by Act Two the emotional river isn't spilling over the banks, I reassess the plot so that once the writing is flowing I don't slide into a dry creek. The central character should be struggling to navigate life well into the end of Act One, even if her fiercest antagonist is only from within. — Patricia Hickman

When you own gold you're fighting every central bank in the world. That's because gold is a currency that competes with government currencies and has a powerful influence on interest rates and the price of government bonds. And that's why central banks long have tried to suppress the price of gold. Gold is the ticket out of the central banking system, the escape from coercive central bank and government power. — James Rickards

There are almost 200 currencies of the world, but there's only one international currency. There are almost 200 currencies controlled by central banks and governments, but there is only one mathematical currency today, and that is bitcoin. We are going to build more of them. Cryptographic currencies are going to be a mainstay of our financial future. They are going to be a part of the future of this planet because they have been invented. It's as simple as that. You cannot un-invent this technology. You cannot turn this omelette back into eggs. — Andreas M. Antonopoulos

Welcome to the age of paper money, where governments and central banks can manufacture as much money as they want without limit. Gold was the last limit. Its banishment as a standard unleashed the inflation monster and leviathan itself, which has swelled beyond comprehension. — Llewellyn Rockwell

In the economy of the cuckoo people that populate central banks, everything is possible. What you have is gigantic bubbles, the NASDAQ in 2000, then the housing bubble and then commodities in 2008 when oil went from $78 to $147 before plunging to $32 within six months. — Marc Faber

It is clear to me that the financial sector, including CNBC, loves central banks — Marc Faber

The Congress has had an uneasy relationship with banks and bankers since Alexander Hamilton. It took the United States until 1913 to set up a central bank. The Federal Reserve earned its hard-won independence over years of effort. — Robert Zoellick

The Federal Reserve ranks among the most transparent central banks. We publish a summary of our balance sheet every week. Our financial statements are audited annually by an outside auditor and made public. Every security we hold is listed on the website of the Federal Reserve Bank of New York. — Janet Yellen

Now the stream of our common consciousness seems to be obliterating its own banks, losing its central direction and purpose, flooding the lowlands, disconnecting and isolating the highlands and to no particular purpose other than the wasteful fulfillment of its own internal momentum — Robert M. Pirsig

[When] the market is trying to get to terms with, first, lower global growth, particularly out of emerging markets and China. And, second, the market is worried the central banks have run out of ammunition. So put these two things together, and then investors are repricing the market lower. — Mohamed El-Erian

If all currencies are moving up or down together, the question is: relative to what? Gold is the canary in the coal mine. It signals problems with respect to currency markets. Central banks should pay attention to it. — Alan Greenspan

The one instrument that has relative political autonomy is monetary policy. Central banks do not need to go to Congress to get approval for an interest rate hike. — Mohamed El-Erian

Insanity has infected all the central banks of the world. — David Stockman

Of the 53 central banks tracked by Bloomberg, 19 have dropped their benchmark interest rates in the past three months. Low rates encourage consumers to borrow and spend, increasing domestic consumption. They also devalue currencies, making exports cheaper. That's good for the countries selling but hard on countries flooded with cheap products. — Anonymous

We are in the midst of a once-in-a-century credit tsunami. Central banks and governments are being required to take unprecedented measures. Those of us who have looked to the self-interest of lending institutions to protect shareholders' equity are in a state of shocked disbelief. — Alan Greenspan

The establishment of a central bank is 90% of communizing a nation. — Vladimir Lenin

The idea that when people see prices falling they will stop buying those cheaper goods or cheaper food does not make much sense. And aiming for 2 percent inflation every year means that after a decade prices are more than 25 percent higher and the price level doubles every generation. That is not price stability, yet they call it price stability. I just do not understand central banks wanting a little inflation. — Paul Volcker

Look at Ukraine. Its currency, the hernia, is plunging. The euro is really in a problem. Greece is problematic as to whether it can pay the IMF, which is threatening not to be part of the troika with the European Central Bank and the European Union making more loans to enable Greece to pay the bondholders and the banks. Britain is having a referendum as to whether to withdraw from the European Union, and it looks more and more like it may do so. So the world's politics are in turmoil. — Michael Hudson

The lack of monetary discipline has become a hallmark of unfettered globalization. Central banks have failed to provide a stable underpinning to world financial markets and to an increasingly asset-dependent global economy. — Stephen S. Roach

As you know, in the latter part of 2008 and early 2009, the Federal Reserve took extraordinary steps to provide liquidity and support credit market functioning, including the establishment of a number of emergency lending facilities and the creation or extension of currency swap agreements with 14 central banks around the world. — Ben Bernanke

The same six corporations own the media outlets that we rely on for nearly all of our information. These corporations serve the interest of the central banks. The strength of these corporations lies in the large amounts of money that they generate. If the people were informed of the control these corporations have, then they would stop investing their money towards these companies, and the corporations would lose their power and wealth. It is in the best interest of the government, the corporations and the banks to keep the public uninformed. The biggest tool of maintaining public ignorance is by the control of media outlets that distribute information to the mass population. — Joseph P. Kauffman

The actions taken by central banks and other authorities to stabilize a panic in the short run can work against stability in the long run if investors and firms infer from those actions that they will never bear the full consequences of excessive risk-taking. — Ben Bernanke

The Central Bank should have a permanent window for discounting high quality securities where banks could go and discount these. It gives peace of mind to the banks. In the absence of this facility, what banks tend to do is to keep a liquidity cushion for emergency requirements. This is a very expensive way of managing liquidity. — Abdul Aziz Al Ghurair

In 2008, when Lehman Brothers collapsed, we anticipated that Europe was going to have a very different bailout scheme than the U.S. because of their different political systems and different relationships between the central banks and the fiscal authorities. — Lou Jiwei

M0 (also known as the monetary base or high-powered money), which is equal to the total liabilities of the central bank, that is, cash plus the reserves of private sector banks on deposit at the central bank; and M1 (also known as narrow money), which is equal to cash in circulation plus demand or 'sight' deposits. — Niall Ferguson

There is no answer in the available literature to the question why a government monopoly of the provision of money is universally regarded as indispensable ... It has the defects of all monopolies. — Friedrich Hayek

My monetary studies have led me to the conclusion that central banks could profitably be replaced by computers. Fortunately, for me personally, that conclusion has had no practical impact, else there would have been no Central Bank of Sweden to have established the award [Nobel Prize] I am honored to receive. — Milton Friedman

The expansionary operations of the Second Bank of the United States, coupled with its laxity toward insisting on specie payment by the state banks, impelled a further inflationary expansion of state banks on top of the spectacular enlargement of the central bank. Thus, the number of incorporated state banks rose from 232 in 1816 to 338 in 1818. — Murray Rothbard

In a small Swiss city sits an international organization so obscure and secretive ... Control of the institution, the Bank for International Settlements, lies with some of the world's most powerful and least visible men: the heads of 32 central banks, officials able to shift billions of dollars and alter the course of economies at the stroke of a pen. — Keith Bradsher

Japan's experience suggests the importance of assessing the sustainability of price stability over a fairly long period, which many central banks have emphasized in recent years. — Toshihiko Fukui

Ever since the 2008 global financial crisis, central banks had ventured, not by choice but by necessity, ever deeper into the unfamiliar and tricky terrain of "unconventional monetary policies." They floored interest rates, heavily intervened in the functioning of markets, and pursued large-scale programs that outcompeted one another in purchasing securities in the marketplace; to top it all off, they aggressively sought to manipulate investor expectations and portfolio decisions. — Mohamed A El-Erian

I've lived to see key parts of my research absorbed in textbooks and in central banks around the world. And some finance ministries, too. — Edmund Phelps

The powers of financial capitalism had a far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. — Carroll Quigley

We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K. — Eddie George

Without easy credit creation a true bubble cannot occur. That is why so many bubbles have their origins in the sins of omission or commission of central banks. — Niall Ferguson

There is a well-established conviction that the central banks always do what is necessary to keep the system going and then afterwards you then take care of the legal aspects. In a crisis, you simply do not have time to think about such concerns for too long. — George Soros

It is a sobering fact that the prominence of central banks in this century has coincided with a general tendency towards more inflation, not less. [I]f the overriding objective is price stability, we did better with the nineteenth-century gold standard and passive central banks, with currency boards, or even with 'free banking.' The truly unique power of a central bank, after all, is the power to create money, and ultimately the power to create is the power to destroy. — Paul Volcker

When the Eurozone was started, a fundamental stabilising force that existed at the level of the member-states was taken away from these countries. This is the lender of last resort function of the central bank." EZ governments, "could no longer guarantee that the cash would always be available to roll over the government debt." Unlike stand-alone nations, EZ members did not have "the power to force the central bank to provide liquidity in times of crisis." This created a fundamental fragility in the monetary union. Without a buyer-of-last-resort, shocks that provide re-funding difficulties in banks or nations can trigger self-fulfilling liquidity crises that degenerate into solvency problems. — Richard Baldwin

The first task of the Federal Reserve system would be to finance the World War. The European nations were already bankrupt, because they had maintained large standing armies for almost fifty years, a situation created by their own central banks, and therefore they could not finance a war. A central bank always imposes a tremendous burden on the nation for "rearmament" and "defense", in order to create inextinguishable debt, simultaneously creating a military dictatorship and enslaving the people to pay the "interest" on the debt which the bankers have artificially created. — Eustace Mullins

On his thirteenth birthday he had seen a film in which the central character was a painter who, unable to sell his work, grew cold and hungry as he went from one unsuccessful interview to the next; eventually he had become a vagrant, sleeping in the streets of the city where once he had walked in hope. Hawksmoor left the cinema in a mood of profound, terrified apprehension and, from that time, he was filled with a sense of time passing and with the fear that he might be left discarded on its banks. The fear had not left him, although now he could no longer remember from where it came: he looked back on his earlier life without curiosity, since it seemed to lack intrinsic interest, and when he looked forward he saw the same steady attainment of goals without any joy in their attainment. For him, the state of happiness was simply the state of not suffering and, if he cared for anything, it was for oblivion. — Peter Ackroyd

There's only one thing that all of the central banks control and that is the base, their own liability, and they can control that in various ways. They can control it directly by open market operations, buying and selling government securities or other assets, for example, buying and selling gold, or they can control it indirectly by altering the rate at which banks lend to one another. — Milton Friedman

The world's central banks and the International Monetary Fund still have vaults full of bullion, even though currencies are no longer backed by gold. Governments hold on to it as a kind of magic symbol, a way of reassuring people that their money is real. — James Surowiecki

American banks may have been unable to supply adequate loans, but the Rothschild consortium in Britain was both able and willing. It was during this time that the Rothschilds were consolidating their new industrial holdings in the United States through their agent, August Belmont. Derek Wilson tells us: "They owned or had major shareholdings in Central American ironworks, North American canal construction companies, and a multiplicity of other concerns. They became the major importers of bullion from the newly discovered goldfields". — G. Edward Griffin

The world changes! So we're in a situation today where the only policymakers that have flexibility are central banks. But they don't have the instruments! So they've had to experiment, and the more you experiment, the more uncertainty and the higher the risk of collateral damage. — Mohamed El-Erian

The goal of the FED, as with all central banks, is three-fold: (1) to protect the largest commercial banks from their depositors, who occasionally exercise their contractual right to withdraw currency (the ungrateful cads); (2) to control entry of newcomers into the bankers' cartel (interlopers); (3) to keep the stock market from collapsing in a panic, thereby persuading depositors to withdraw currency — Gary North

I am pretty sure central banks will continue to print money, and the standards of living for people in the western world, not just in America, will continue to decline because the cost of living increases will exceed income. The cost of living will also go up because all kinds of taxes will increase. — Marc Faber

The central banks cannot control interest rates. That's a mistake. They can control a particular rate, such as the Federal Funds rate, if they want to, but they can't control interest rates. — Milton Friedman

This is the joint responsibility of everyone who was involved in the introduction of the euro without understanding the consequences. When the euro was introduced, the regulators allowed banks to buy unlimited amounts of government bonds without setting aside any equity capital. And the European Central Bank discounted all government bonds on equal terms. So commercial banks found it advantageous to accumulate the bonds of the weaker countries to earn a few extra basis points. — George Soros

I have never believed that central banks should have rigid inflation targeting. That is not a good thing to stabilize. There is nothing in economic theory to back this. — Robert Mundell

The Federal Reserve System had been established to prevent what actually happened. It was set up to avoid a situation in which you would have to close down banks, in which you would have a banking crisis. And yet, under the Federal Reserve system, you had the worst banking crisis in the history of the United States — Alan Ebenstein