Insider or Outsider? Bloomberg article on Honohan succession

There is a brief article in Bloomberg Business today about the search for a new Irish Central Bank governor.

“Ireland is about to deliver evidence on whether, nearly two years after regaining its economic sovereignty, much has really changed. ……   Noonan’s dilemma now is whether to move back to the pre-crisis mode of finding a governor from inside the civil service, or repeat the Honohan recipe and appoint another outsider.”

The Paddy Power betting odds are discussed. As a financial economist, I am forbidden by the Efficient Market Theory from making gambling bets, but perhaps some of the labour/macro economists might want to take a punt.

I had an earlier post on the strategic issues around this appointment. The recent China-related volatility in financial markets is the latest difficult policy problem confronting monetary authorities in Europe and globally. Ireland should appoint someone as governor who can serve both domestically and also contribute to ECB council deliberations.

Since some readers will know some of the people mentioned personally, I blocked the comments feature.

 

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