Monetary policy is formulated and implemented by the eurosystem, which consists of the European Central Bank (ECB) in Frankfurt and the national central banks of the member countries. The staff of the Central Bank of Ireland actively participate in the eurosystem committees that provide advice to the Governing Council of the ECB.
But when it comes to communication, a lot has changed since then. Central banks' most powerful tool today is still their ability to set interest rates, but communication has come very high on the agenda. Today we see open-mouth operations conducted by the Federal Reserve and other central banks and they are using forward guidance as an effective tool.