The Cleveland Fed has a tradition of sponsoring scholarly research on topics that are core to the mission and responsibilities of central banks. Conferences such as this one have been a visible part of that tradition, but this gathering is especially notable as it is the inaugural event for the Bank's newly founded Central Bank Institute. We will do some research here, and we will promote a network of scholars who can help one another to do better work. We plan to be a source of creativity, inspiration, and information about central banking.
Central banks are worthy of such attention because of their social and economic importance.
Before nations created central banks as we know them today, we relied on private institutions to manage the government's funds and to provide payments services. Price stability was provided through a commodity standard, although that was frequently thwarted by sovereign debasement. The point is, governments have choices in organizational design and responsibility. The Federal Reserve Banks are 87 years old this month, and are very different from the original design. No doubt, they will evolve further as they approach their 100th anniversary in 2014.