This volume contains two major papers prepared for the Bank of England's Tercentenary Symposium in June 1994. The first, by Professors Capie and Goodhart and Dr Schnadt, provides an authoritative and comprehensive account of the evolution of central banking in the major economies, tracing the development of both the monetary and financial stability concerns of central banks; explaining their institutional characteristics; and introducing some of the strands in academic thinking. It includes individual sections on the evolution and constitutional positions of thirty-one central banks from around the world, which will make it a valuable reference work in its own right. The second paper, by Professor Fischer, explores the major policy dilemmas now facing central bankers: the extent to which there is a short-term trade-off between inflation and growth; the choice of inflation targets; and the choice of operating procedures. Important contributions by leading central bankers from around the world, and the related Per Jacobsen lecture by Professor Lamfalussy, are also included in the volume, which will be essential reading for anyone interested in central banking or in the conduct of monetary policy.