Ireland experienced in the last decade a property boom-bust cycle of the most severe type. The aftermath has been protracted and painful. While the economy is now recovering strongly, public and private indebtedness remains very high and the return to growth is very much helped by the exceptionally low level of interest rates which help to reduce the burden of debt.
Since spring last year when the Bank of Japan effected the zero interest rate policy and public funds were injected into major banks to strengthen their capital base, public confidence in the financial system has been gradually restored, and we are observing a favorable impact on the economy.