The strongest economic arguments for a break were (i) the fact that the currency link to what had been the epitome of financial strength no longer provided financial stability, combined with (ii) a perception that the long-period of relative economic decline for the UK would continue and  3  2  For example, the standard deviation of inflation in Ireland minus inflation in the UK in this period approached 2 percentage points – even when the war years are excluded.
Gerlach and Stuart (2014) discuss Irish monetary and price data for those years. BIS central bankers’ speeches  would augur poorly for an economy too closely linked with it. Yet, lacking a clear alternative policy, and fearful of switching to too tough a regime, the Irish authorities had left any decisive step to change currency policy on the long finger.