Congratulations to Philip Lane

Many congratulations to Philip who has been formally appointed as the ECB’s new chief economist. The next few years are likely to be challenging ones for the Eurozone, and so it’s good to see an economist trained on the briny shores of the Atlantic being appointed to the position.

The Euro

I thought I’d take a break from Brexit and Trump, and write a Critical Quarterly column about the Euro for a change. The main point I take from it now, a few months after writing it,  is that we should stop teaching our students that if a currency union faces shocks that are symmetric, rather than asymmetric, then there is no problem. The post-2008 experience teaches us that free rider problems and ideology can lead to very sub-optimal responses even to symmetric shocks.

Sharon Donnery (Deputy Governor, Central Bank of Ireland) speech on macroprudential policy

The Department of Economics, Finance & Accounting at Maynooth University welcomes Sharon Donnery, Deputy Governor of the Central Bank of Ireland, who will deliver a talk on “Building resilience in the face of uncertainty – what role for policy?”, followed by a panel discussion, chaired by Bridget McNally (Maynooth University) with panelists Robert Kelly (Central Bank, Head of Macro-Finance Division), Dermot O’Leary (Chief Economist at Goodbody Stockbrokers), and Gregory Connor (Maynooth University), on Thursday 31st May 2018,  at 11am – 12:15 pm, Renehan Hall, Maynooth University. R.S.V.P. For further information tel: 01-7083728 / 7083681


My latest Critical Quarterly column, on the political upheavals of 2016, is available here.

A Slow Negotiation Might Help Achieve a Better Brexit Solution

Writes Patrick Honohan for the Peterson Institute’s blog here. I’ve said a few times that the Brexit negotiations will take years (and–gasp–require immigrant labour).

Patrick’s point is well made. The sheer length of the negotiation process may give time to let the British people understand the benefits of being within a free trade area, while also managing somehow starting to solve the problems the referendum result threw up. These could be solved, arguably, by less austerity and more capital spending in areas left behind in recent decades.