The Bank of France contributes to the design of the monetary policy of the euro zone (through macroeconomic research and forecast and by taking part in the deliberations on ECB decisions) and implements it in France.

It is also the guardian of currency: it prints euro bank notes (it is the largest printer of euro notes) and manages the circulation of bank notes and coins. It also participates in the fight against counterfeit money, by training bank employees, merchants, police, etc.

The Bank of France establishes France's balance of payments and manages part of the foreign exchange reserves of the ECB.


In theory the Bank of France is supposed to support the ECB, but I am wondering if there's anything that prevents the bank from going rogue and printing as much Euros as possible at the behest of a militant French government. Is there any hard limit imposed against the bank, or is the ECB at the mercy of the Bank of France? What can the ECB do in this extreme and unlikely situation?



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