Alternatively, a judgment that the adjustment costs were large, or the shock to demand temporary, might argue in the direction of a more measured policy response. While it is hard to know for sure how important these adjustment costs may be, it is worth noting that, historically, there has been considerable variation in employment and production in the residential construction sector.
Public support for the euro in Ireland has been particularly strong, and this may be due to the prevailing expectation, stronger than elsewhere, of economic benefits resulting from the single currency. The introduction of the euro, however, also poses some new questions and challenges for the ECB and national economic policymakers.