Finance, Forex and Investments

Why does Australia need a Reserve Bank or why do countries need a central bank?

Why can't the responsibilities of the Central banks be borne by a department of that countries' Federal Government? Why is it that the financial status of a countries' people (and the ability to generate bank notes or cash) is being determine by a bunch of private and profiteering directors? Or am I misunderstanding something here? If the interest generated by Central banks was put back into consolidated revenue instead of lining the pockets of directors and share holders, wouldn't this minimise inflation?

Public Comments

1. Who are you going to blame if something goes wrong? The Bank.
2. A Central Bank is basically a nation's banker. Where it borrows money from basically and it helps a country prints its currency.... At INTEREST. SO basically your losing money by printing too much hence inflation.