Monetary policy in EMU is now set by reference to euro area economic conditions and cannot be geared to deal with problems peculiar to particular regions or countries. The principal policy instruments available to dampen inflationary pressures peculiar to Ireland are fiscal policy, which should be set on a prudent, moderately restrictive path, and incomes policy.
The overall burden of debt in the economy – the total debt of the public sector, the business sector, and households, relative to GDP – has been declining very slowly over the 2  BIS central bankers’ speeches  past few years.