Mr. Marco Buti:

The growth model of the Irish economy transformed itself from an export-led economy to more domestic-led growth. This went hand-in-hand with a development, considering the domestic sources, of the housing market which was considered to be a healthy one. The focus then, as I indicated, was on other matters. We signalled that there was an issue related to this, but we had neither the tools nor, I am the first to admit, the type of focus on developments in the housing market, the financial markets and the banking sector which could have prevented that. With the benefit of hindsight we should have done that, but the focus at the time was in line with the great moderation paradigm and this was what we did, as unfortunately did many others who have been witnesses before me.