At this stage it is clear that there will be many different institutional structures for coordinating systemic supervision, and that we will have to learn from experience which arrangements work and which don’t – and that the results will very likely be country dependent.
It is important that policymakers are mindful of such vulnerabilities in order to ensure that Ireland is resilient if any of these tail risks is triggered. Irish housing market Let me turn to the Irish housing market. The increase in house prices in recent years in part reflects the strong increase in employment and aggregate household incomes, together with the low interest rate environment.