Those who took that view would restrict their purchases and demand would fall off, and so the 4 percent rate might be found potent enough, even though, if unsupported by traders' anticipations, a 6 or 7 percent rate might have been necessary.” -- A Century of Bank Rate (1938) 3  Chart 4  Monetary Policy Discussions by Economists in the UK in the First Half of the 20th Century (4) Announcement effect of monetary policy  John Richard Hicks (1904-1989)  “I want to use the announcement effect of an act of policy to mean the change which takes place in people's minds, the change in the prospect which they think to be before them, before there is any change which expresses itself in transactions of any kind.
Credit and house prices display the largest divergence to our European neighbours, and with the recent credit boom and house price peaks and troughs this is perhaps no surprise. However GDP, household income, and employment also move more relative to European countries. *** As evidenced by our volatility, the Irish economy has vulnerabilities, these can be cyclical or structural.