Financial engineering can get us out of crisis: Patrick Honohan

Lack of trust and a fear of moral hazard has inhibited financial innovation, he told London School of Economics

Outgoing Central Bank governor Patrick Honohan Pic: Rollingnews.ie

Use financial engineering to get us out of the tail-end of the crisis, departing Irish central bank governor Patrick Honohan has said in an address to the London School of Economics.

While financial engineering was unquestionably the cause of the crisis he said - though not the Irish crisis - a lack of trust and a fear of moral hazard has inhibited “inhibited the employment of more innovative contracts that could help restore ...