Oireachtas Joint and Select Committees

Thursday, 18 December 2014

Committee of Inquiry into the Banking Crisis

Context Phase

2:10 am

Mr. Rob Wright:

By getting off the track of a pro-cyclical fiscal policy of spending money when it should not have been spent in an overheated economy. That is what they would have done. They would have said, "Rein in the spending, take some actions to rein in the construction sector". If one would have made those decisions by 2005 instead of increasing spending - or even perhaps 2006, but by 2006-07 it was probably too late - when one had the spending ramped up that dramatically in an obviously overheated economy, that is a dangerous point.

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