Mr. Peter Nyberg:

The interest rates affect economies in several ways. One is through the capital coming in and the second is through demand changes. Depending on what one wants to affect, one can either use fiscal policy, that is, the government can support or restrain the real economy more or less, depending on what they want to do. When it comes to capital imports, it is really difficult because foreign banks can operate in Ireland as well as Irish banks, but there is always the possibility, for instance, of affecting Irish banks through lending constraints provided by the Central Bank or a financial regulator. For instance, the Financial Regulator has the right - I think they still do - to regulate the capital needed against certain lending. If more capital is needed, banks will lend less, for instance, which means that at least through the banks that are subject to Irish law, there will be less lending to that sector. Then, there is the question that it does mean any lending coming in through that sector might come through different sources or different institutions. There is taxation available. If one wants to reduce investment in housing, one sets a tax on housing.