A broader lesson for monetary policy resulting from the analysis is that long-term inflation expectations are likely to be more stable in a sticky-information world. Central bankers will probably find this message reassuring.
Macroprudential policy is about limiting risk to the financial system as a whole. The mortgage measures are centrally important in achieving this objective. Every person has a stake in this. The mortgage measures are designed to ensure borrower resilience, but they are also designed to ensure banks lend sensibly, and that excess credit does not build up within the Irish financial system.