November 14, 2021

Cormac Lucey: US inflation, overregulation and a stock market crash will shatter our financial stability | Ireland

The Central Bank of Ireland published its financial stability review last week. On the one hand, the Central Bank wants to communicate that it’s doing a grand job protecting us from financial risks. On the other, it wants to alert us to growing risks — sometimes caused by our own behaviour — and to avoid accusations of institutional complacency, especially if something subsequently goes wrong.

The typical institutional compromise is to admit risks but to do so in such a subdued fashion that most readers will skim over the relevant bits in the reports. Then, if things later go wrong, the writers can say: “You should have paid more attention to this part of our report.” It’s not our fault, it’s yours.

How then should

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