Oireachtas Joint and Select Committees

Wednesday, 28 January 2015

Committee of Inquiry into the Banking Crisis

Context Phase

Professor Edward Kane:

We see the notion that low interest rates are going to cure everything and the buying up of private securities, which seems very dangerous. I see the ECB following what was done in the USA, but it is very different for the Federal Reserve Bank, which is backed by the taxpayers of the United States, and the ECB, whose claim on taxpayers is very imperfect. I can easily see the ECB overextending itself.