Because simple feedback policies link the central bank’s policy instrument to a short list of macroeconomic variables, these policies should be relatively easy for the public to understand and to use in forming expectations of the way monetary policy will evolve in the future.
Resilience Now let me turn to the resilience of the economy and nancial system. An important positive is that the starting resilience of households, businesses and the domestic banking system is signi cantly stronger compared to the onset of the 2008/2009 nancial crisis. Since then, Irish banks have been deleveraging substantially and in recent years the government has been reducing external net debt liabilities.