Oireachtas Joint and Select Committees

Wednesday, 25 January 2023

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Economic Issues: Engagement with Governor of the Central Bank of Ireland

Photo of Peadar TóibínPeadar Tóibín (Meath West, Aontú) | Oireachtas source

There are a couple of things there. It is very important that we have an Irish-wide analysis. European-wide analysis is fantastic but it is really important that we have analysis of the Irish experience specifically. We have had negative experiences with interest rates being set by the European Union. European Union interest rates led in significant part to our property bubble that existed before the crash. If Ireland is in a different cycle or has different inputs in terms of our experience, it would be useful for us as a committee and for the Oireachtas to see quantitative research on that. On the effect of Covid in Ireland, I would greatly appreciate if the Central Bank could also provide the committee with the impacts of Covid decisions on the process with regard to restrictions and increased money flow, etc.

These are policy levers that for all we know may well be used in the future. It would be beneficial for governments to know the effects these have in the long term. It is interesting that if you go back on a historical basis to all of the great plagues there are massive increases in inflation after them. That has a massive knock-on effect on people's ability to live. Would it be possible to get some information on the effect Covid policy had on inflation?

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