Towards this end, international cooperation is necessary, and the central bank, I believe, is well suited for this job, in particular, on financial matters. A number of cooperative groupings linking central banks like BIS (Bank for International Settlements), EMEAP (Executives’ Meeting of East Asia and Pacific Central Banks) and SEACEN (South East Asian Central Banks) have already been set up.
In addition to the ban on monetary financing of the public sector, this means the central bank is prohibited from engaging in economic policymaking, even if the line drawn between monetary and economic policy can sometimes vary in width. Furthermore, the national government authorities are obliged to ensure sound budgetary policy, as excessive borrowing may jeopardise the stability of the single currency.