Relevance of central bank Why do we need central bank ?
surely the government can print currency and regulate banks by conducting audits through finance ministry and so on.
Why do we need central bank ?
So why did we need a central bank? Well, lets look at what the co-author of what has gone down in history as the Aldrich Plan, named after Senator Nelson Aldrich. His co-author on the bill was Edward Vreeland who wrote in August 25th, 1910, in the Independent, a newspaper owned by Nelson Aldrich that, &quot;Under the proposed monetary plan of Senator Aldrich, monopolies will disappear, because monopolies cannot continue at such a low rate. Also, this will mark the disappearance of the Government from the banking business.&quot;
An interesting piece of trivia is that when our modern day &quot;Federal Reserve System&quot; was being planned, Paul Warburg who was a European from Germany that worked for the banking house Kuhn, Loeb and Company informed his other colleagues that were also planning for this new system that we have today, to avoid using &quot;central bank&quot; in the name. That's how we got this name of &quot;Federal Reserve System&quot;, but it's basically a central bank with a new label, new to the early Twentieth Century.
Another piece of trivia is that the argument for a central bank in 1812 was presented as being that financial distress brought about by the war (War of 1812) required financial relief in the form of a new national bank.
This was at least the argument made for the second central bank that was charted in the history of the United States, the House and Senate passed a bill creating the Second Bank of the United States. I am speeding through history here.
One last piece of trivia that speaks to your statement of, &quot;surely the government can print currency and regulate banks by conducting audits through finance ministry and so on&quot;.
At the outset the opinion of Thomas Jefferson made the powerful argument regarding the proposal for the first central bank of the United States:
I consider the foundation of the Constitution as laid on this ground; That &quot;all powers not delegated to the United States by the Constitution nor prohibited by it to the states, are reserved to the states, or to the people.&quot;
To take a single step beyond the boundaries thus specifically drawn around the powers of Congress is to take possession of a boundless field of power no longer susceptible of any definition.
The Bill delivers us up bound to the National Bank, who are free to refuse all arrangements, but on their own terms, and the public not free, on such refusal, to employ any other bank.
The bill that Thomas Jefferson referred to was one put before him by proponents of central banks, namely Alexander Hamilton.
Citation:

Charles A. Lindbergh, Sr., Banking Currency and the Money Trust
The Writings of Jefferson, vol. 7 (Autobiography, Correspondence Reports, Messages, Addresses and other Writings)(Committee of Congress: Washington, D.C., 1861) page 685.