However, the economics of financial institutions is anything but static. This process of change of power and influence is influenced enormously by the government and the regulators of the financial system. Mishkin, chapters 9 - 13. FDIC Banking Review , Vol. Central banks are the primary regulators and overseers of commercial banks.
Central banks are responsible for the conduct of monetary policy.
One of the more interesting and novel central banks is the European Central Bank . It faces a variety of challenges that other central banks have not known. This is not a course in macroeconomics, nor is it intended to substitute for our course in macroeconomics. The intention here is to study enough macro to fit money into the model.