Central Bank right to stick to its guns
It’s a rough choice, but the state just can’t be sucked into another credit vortex
Patrick Honohan’s lasting legacy as governor of the Central Bank is undoubtedly the steadying hand he brought to the economy at a time of unprecedented turmoil. One of his last major policy acts as governor, though, is becoming equally important.
Towards the end of his tenure, Honohan introduced the so-called macro-prudential rules which set out limits on how much could be borrowed and the size of deposits needed to get a mortgage. They ...
