‘Flaws’ in our eurozone thinking

The governor of the Central Bank has said the assumption that being in the eurozone would save the country from macroeconomic trouble was a major flaw in policy thinking.

Patrick Honohan made his comments at the University of Limerick as part of a visit to the city which included a meeting of the Central Bank Commission.

“When Ireland joined the euro it seemed to some macroeconomics that Ireland was no longer an interesting case to study just a region within the euro area, but what those people missed was that it was a sovereign region with its own budget, its own banking regulation and its own implicit back stop for banks,” Mr Honohan said.