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As a result of these new uses, the domain of responsibility of the federal reserve and the relation between it and other regulatory agencies need to be reexamined.
Central banking has always been a major determinant of what is known with certainty, what is probable, and what is purely conjectural in financial markets. The evolution and developments of central banking has not been solely a reaction to an independently-evolving financial structure, but has been also a determinant of this evolution. A sophisticated central bank has always cast a “wider net” than any narrow legislated or contractural responsibilities...
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