Why do central banks play an important role in the global economy

The main role of Central bank is to conduct monetary policy to achieve stability in price and further help to manage economic fluctuations. The policies and framework of the central bank have been gone through massive changes over time.

The central bank leads to Monetary policy by controlling the money supply. usually by open market operations. foe example central bank can reduce the money amount by selling the government bonds by sale repurchase agreement by taking money from the commercial bank.