Finance & Fury Podcast

Welcome – Last Friday we looked at the stock market crashes of 1907 and 2008 Difference between them was the crash of 1907 had no intervention by any central bank in the USA – because no central bank actually existed yet. But this crash lead to the creation of the US Central Bank (Federal Reserve). This made way for the intervention by central banks in 2008 to try to advert more of the crisis in the banking sector than what was experienced in the past. So, today we will be talking about Central Banks, and more importantly, the interventions they take in the economy. Why? Some economists put banking crisis (estimated around 100) at the feet of Central Banks and not banks. Let’s look at if it is the case or not:   Central banks – responsible for monetary policy Monetary Policy: (Central Banks) Money supply, interest rates and inflation Fiscal policy: (Government) Govt. spending and taxes Every country has one, but not many people know what they do! Almost like a brain, everyone has one, but few know how it