Oireachtas Joint and Select Committees
Wednesday, 21 January 2015
Committee of Inquiry into the Banking Crisis
Context Phase
Professor Philip Lane:
That is true but even in that situation the fact that the true balance is known only after the fact means that, first, one proceeds on a prudential basis and, second, as time moves on one can release funding from the rainy day fund if one is too pessimistic or can have some mechanism to replenish it if one is too optimistic. There are ways to get around that.