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Migeru:
So, what happened in Ireland? Why was the Irish Central Bank unable to act as a lender of last resort for its banks, fording the Treasury to guarantee all their liabilities and create NAMA as a "bad bank" solution? And why couldn't the Irish Central Bank support the Irish treasury in the recapitalization of the Irish banks?
In other words, maybe this is not true necessarily...

Can the Eurozone National Central Banks create fiat Euros by themselves?

lender of last resort action involves the creation of "high-powered" or "base" money by the Central Bank
See also this thread.

Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010
by Migeru (migeru at eurotrib dot com) on Wed Dec 1st, 2010 at 08:59:26 AM EST
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