Professor Philip Lane:

The bank does not just look at the overall number. We now have a great deal more detailed data than we used to have so we have quite a good understanding on a county-by-county basis. For example, we have detailed regional data in respect of mortgage problems, house prices and employment, and that feeds into our thinking. We are mindful of regional differences but ultimately, at macro level, we have national policies. What is necessary, not for us as the Central Bank but in terms of the conduct of government and in addition to striking the right balance at a country level, is an arsenal of regional policies to address the clear differences across the country. Incidentally, when one looks back on the crisis one sees that the scale of the downturn was far more severe outside Dublin than in Dublin. Dublin had a recession but it was in no way as severe. There is a symmetry in what has been going on. More broadly, we are seeing Dublin, Cork, Galway, Limerick and the urban areas performing quite differently from more isolated areas.