The Central bank in Dublin. Pic: Bryan Meade

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Unconventional problems, unconventional solutions: How Irish households could benefit from creative thinking on monetary policy

If the Irish banking system refinanced its mortgage book, it could then pass on significant savings to Irish mortgage holders. This would offer significant stimulus to the economy of around €200 per month for the average Irish mortgage holder.

21st May, 2020 - 6 min read

Over the last two weeks Q1 GDP data was released for the US, the eurozone and the UK. Predictably, the GDP prints show that all of the major economies have fallen into the most severe economic slump since the global financial crisis in 2008/9. The Q2 GDP prints, which will be released in early July will be at even worse levels, because the second quarter is when most of the developed economies went into lockdown. Central banks are well aware of the large declines in economic activity and they acted early in the crisis to alleviate the worst effects of the pandemic.

First, central banks cut interest rates to all-time low levels. The Bank of England cut...

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