The pooling of the costs arising from any erroneous assessments by supervisory authorities would entail a joint assumption of responsibility by these authorities. If we want to avoid any recurrence of a crisis like the Irish one, it is necessary to provide for an integrated European supervisory system, limiting the scope for discretion by the national authorities and subjecting them to close monitoring.
the price level (P) times real output (Y). The central bank is concerned with preserving price stability and supporting the economy, but it can do so only very indirectly and imprecisely by controlling base money, i.e. the sum of currency and bank reserves.