# Do we need a central bank?



## Firefly (1 Nov 2006)

In the good ole days our central bank was instrumental in meddling with the Irish economy. Given that monetary policy is conducted in Europe and the fact that the Financial Regulator regulates our banks why do we still need a CB...were there any redundancies after we joined the ERM????

Firefly.


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## shanegl (1 Nov 2006)

From their website:

As a member of the Eurosystem, the Central Bank’s main responsibilities include:

*Contributing to the maintenance of price stability (low inflation) and a stable financial system*
We achieve this through co-operation with the ECB and other national central banks in producing economic forecasts for use in determining monetary policy and by implementing Eurosystem monetary policy and exchange rate policy decisions efficiently. We also work in close co-operation with the Financial Regulator to ensure that financial stability is maintained in Ireland.
*Ensuring safe and reliable payment and settlement systems, to enable firms and individuals to make payments to each other *
Euro area monetary policy operations are implemented through the inter-central-bank system known as TARGET. It includes the national real-time gross settlement systems of the EU countries and the ECB. Nearly every EU credit institution is linked to TARGET and although the system was primarily developed to meet the needs of the single monetary policy, it can also be used for transmitting both interbank and customer payments.
*Producing and distributing euro banknotes and coins and ensuring the security and integrity of the euro currency*
The ECB has the sole right to issue euro banknotes and approves the volume of euro coins to be issued in euro area countries. With the approval of the Eurosystem, the Central Bank issues euro banknotes and coins in Ireland is responsible for ensuring the quality and authenticity of euro banknotes.
*Managing foreign exchange assets, on behalf of the European Central Bank *
At the start of EMU, the euro area national central banks transferred a part of their foreign reserves to the ECB. In the case of Ireland this amounted to €451 million. These reserves continue to be managed by us on behalf of the ECB, in accordance with the investment policy of the ECB.
Our *domestic* responsibilities also include:

_Contributing to the maintenance of a stable financial system in Ireland;_
_Overseeing the domestic payment and settlement systems;_
_Ensuring the provision and integrity of banknotes and coins; _
_Managing the investments assets on behalf of the State; and_
_Acting as agent for and banker to the Government._
Furthermore we are responsible for:

*Providing advice and guidance on Irish economic policies*
We are responsible for the provision of economic analysis to our stakeholders and to our domestic policy-makers with a view to promoting policies that are consistent with price stability and long-term growth in Ireland.
*Serving the public interest*
We are accountable to the public through having transparent and active systems of public accountability and external reporting. We also assist the Government in the drafting of relevant legislation both domestically and at EU level.


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## Arthur Daley (1 Nov 2006)

I think it's like a branch office of the Ecb at this stage. The lines are a bit blurred between the CB and Fin regulator when it comes to regulation of credit institutions here. 

I can't imagine there were any redundencies it's civil service after all and staff move easily between the two.


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## Firefly (1 Nov 2006)

Arthur Daley said:


> I think it's like a branch office of the Ecb at this stage. The lines are a bit blurred between the CB and Fin regulator when it comes to regulation of credit institutions here.
> 
> I can't imagine there were any redundencies it's civil service after all and staff move easily between the two.


 

With a nice re-location package too no doubt


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## jrewing (1 Nov 2006)

Arthur Daley said:


> ....I can't imagine there were any redundencies it's civil service after all and staff move easily between the two.


 
Yes, a friend of mine was working for CB for years and is now with Regulator


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