The Evolving Role of Central Banks in a Changing Global Economy

Central banks are the bedrock of contemporary financial structures, with a remit including monetary policy, financial stability, and the issuing of currency. Across the decades, their functions have transformed enormously,from their original role as lenders of last resort, to now tackling issues as profound as climate change, financial innovation, and cryptocurrencies. This paper explores central banks' core functions, recent challenges, and emerging trends, with a view to their increasing role in the world economy.