The banking sector along with its central bank represents one of the most important parts of the economy. The Central bank is responsible for implementing monetary policy, while fiscal policy is primarily reserved for the state. Synchronizing monetary and fiscal policy is one of the key elements of elevating a country out of a recession and successively growing the economy. The central banks themselves can either run an expansive or a restrictive monetary policy. As the primary task of central banks we recognize the regulation of interest rates, the levels of unemployment and inflation. Regulatory actions aimed at the banking sector can significantly limit the scope of the banking business and as such lending and growth of the private sector, which is by itself vital for economic expansion. The American Federal Reserve is the main central bank of the US and is solely responsible for implementing American monetary policy, and its equivalent the Croatian National Bank, which effectively represents its Croatian counterpart. Both of these central banks are responsible for the creation of money within their respective countries. The main goal of this essay is first and foremost to present the tools and actions that are used by the central banks, primarily the Federal reserve and The Croatian National Bank, in an effort to curb the effects of negative economic trends on the economy by exploring the past economic crisis. By analyzing monetary tools of a central bank and its use thereof, a conclusion can be made that without the central banks present, a much dire economic reality would exist certainly without the continued existence,effort and interventions of a single central monetary institution.