NTMA Chief Economist Rossa White and Lisa Sheenan of Queen’s University Belfast have released a new paper, characterising Ireland’s financial cycle, in the first of a new NTMA Research series. Those interested in learning more can read the full paper here.
One reply on “Characterising the Financial Cycle in Ireland”
As acknowledged in the paper the BIS has done a lot of work in this area and indeed in recent years have provided some of the most insightful research on the economic cycle and the influence of monetary policy on the real rate of interest, with an emphasis on empirical analysis. As noted by the authors the current property cycle in Ireland is unusual in that credit has been contracting for most of the period although to my mind there is one obvious culprit- QE, which according to the ECB is designed to reduce long term rates and so encourage investors to buy risk assets. So policy is aimed at stimulating asset prices, including property.