‘Lack of oversight has been remedied’

The macroeconomic imbalances that wrecked the Irish economy from 2008 onwards would have been flagged as needing urgent attention in 2005 under existing procedures, according to the Central Bank.

In a new paper produced by Central Bank economists Ronan Hickey and Linda Kane, it noted that the economic governance rules in place before the crisis erupted were hopelessly inadequate.

The Stability & Growth Pact did not monitor macroeconomic imbalances that were in the years leading up to 2007 becoming a huge problem in countries such as Ireland.