Since the Irish government is a significant net debtor, the level of the long rate is also a central factor in the dynamics of the public finances. While the decline in the long rate since the 1980s is clear in the data, there is still substantial uncertainty about the persistence of this trend.
1. A functioning financial system Financial services play a critical role in all of our lives. Modern societies are dependent on financial services. Understandably, people assume that payments will be made, savings are safe, loans are available, insurance policies will be honoured and so on.