But that probably reflected a lack of mutual understanding of the methodology and professional language as between economists and supervisors more than the institutional separation, which was by no means rigid. In the end, senior officials in both institutions, as well as many elsewhere at home and abroad, were too optimistic about the strength of the economy and the Irish banks.
One should recall that several other central banks and financial regulatory authorities suffered similar failures in the run-up to the crisis. But (with the exception of Iceland) they had not allowed the scale of their banking systems to get so completely out of control as happened in Ireland.