Is the Central Bank independent

mariaalice

Is the central bank truly independent of government, apparently Michael Noonan has asked the central bank to re consider the new deposit rules, now either its blatant electioneering and done for a sound bite as he knows they are independent, or he really can influence the central bank to change police at his behest.

Call me Al

I thought they were answerable to the ECB, hence independent of whoever was in government here, but not so independent of the powers that be in Brussels.

mariaalice

Call me Al wrote: »

I thought they were answerable to the ECB, hence independent of whoever was in government here, but not so independent of the powers that be in Brussels.

So its blatant electioneering then.

BoJack Horseman

I always thought they thread a line between independence & government control.

Don't the government appoint or approve the governor?

markpb

mariaalice wrote: »

Michael Noonan has asked the central bank

The key word there is "asked".

Godge

https://www.centralbank.ie/Pages/legislation.aspx

"(4) Except as expressly provided by this Act, the affairs and activities of the Bank are to be managed and controlled by the Central Bank Commission."

"(10) The Bank is required to perform its functions and exercise its powers in a
manner consistent with the Rome Treaty and the ESCB Statute.
(11) Subject to subsection (10), the Bank shall perform its functions and exercise
its powers in a way that is consistent with—
(a) the orderly and proper functioning of financial markets,
(b) the prudential supervision of providers of financial services, and
(c) the public interest and the interest of consumers.
(12) The Bank can perform its functions and exercise its powers both within the
State and elsewhere"

"6.—(1) The Bank shall perform all functions imposed, and exercise all powers
conferred, on the Bank by or under the Rome Treaty or the ESCB Statute.
F40[(1A) Nothing in the Central Bank Acts 1942 to 2010 affects the independence
of the Bank, the Governor and the Commission required by the Rome Treaty and the
ESCB Statute.
(1B) Without limiting the generality of subsection (1A), nothing in the Central Bank
Acts 1942 to 2010 authorises any person or authority to give any direction to, or
require any action (including the provision of information) by, the Bank, the Governor
or the Commission if compliance by the Bank, the Governor or the Commission (as
the case may be) with the direction or requirement would be inconsistent with the
Rome Treaty or the ESCB Statute.]"


I think these are the relevant sections of the legislation that confer independence on the bank.

mariaalice

So Michael Noonan 'asking' had no more relevance that me writhing in and asking the central bank governor to reconsider the policy, yet he is all over the media implying he is doing something, I despair of both the politicians we have and the electorate if they are fooled by all this, are the electorate really that stupid.

Godge

mariaalice wrote: »

So Michael Noonan 'asking' had no more relevance that me writhing in and asking the central bank governor to reconsider the policy, yet he is all over the media implying he is doing something, I despair of both the politicians we have and the electorate if they are fooled by all this, are the electorate really that stupid.

16% say they will vote SF, so some of them are actually stupider than you think.

Call me Al

mariaalice wrote: »

So Michael Noonan 'asking' had no more relevance that me writhing in and asking the central bank governor to reconsider the policy, yet he is all over the media implying he is doing something, I despair of both the politicians we have and the electorate if they are fooled by all this, are the electorate really that stupid.

Well I would assume his lobbying won't be just a blank request without anything to back it up. I would expect that he's had his minions in the dept do their homework and to have drafted facts and figures to substantiate his suggestion.

But ultimately it's only a request, and they can ignore.

sarumite

Call me Al wrote: »

I thought they were answerable to the ECB, hence independent of whoever was in government here, but not so independent of the powers that be in Brussels.

The ECB is based in Frankfurt, not BrusselsT(he ECB is independent of the powers that be in Brussels).

Call me Al

sarumite wrote: »

The ECB is based in Frankfurt, not BrusselsT(he ECB is independent of the powers that be in Brussels).

I never said the ECB was in Brussels.

And fwiw the ECB can be influenced by a (lobby) group, political or otherwise.

mariaalice

Well someone who is a lot more in to politics that me explained that its a way for Michael l Noonan and the government to distance himself from the policy on the one hand, because they know when they canvas they can say the Central Bank is independent the policy is noting to do with us the government.

On the other hand if the central bank did change the policy they can intimate that the government did something to help the hard pressed first time buyer. Its all about optics and is electioneering.

sarumite

Call me Al wrote: »

I never said the ECB was in Brussels.

And fwiw the ECB can be influenced by a (lobby) group, political or otherwise.

Fair enough. It would seem then that you were implying that ECB was not independent of Brussels? Influence and control are two very different things. I can influence someone with regard their decision making, however that is not the same as making the decision for them.

sarumite

mariaalice wrote: »

Well someone who is a lot more in to politics that me explained that its a way for Michael l Noonan and the government to distance himself from the policy on the one hand, because they know when they canvas they can say the Central Bank is independent the policy is noting to do with us the government.

On the other hand if the central bank did change the policy they can intimate that the government did something to help the hard pressed first time buyer. Its all about optics and is electioneering.

Its a pretty standard setup for central banks to operate independently of government. You don't want a central bank having its decisions made by the finance ministers of a government specifically to avoid the policies being about optics and electioneering.