The prospective scale of such a shock reinforces the advisability of a prudential approach to fiscal policy. V. Conclusions The theme of this speech has been the responsibility of policymakers to look beyond the shortterm horizon of the macro-financial cycle and also ensure financial and fiscal resilience against tail risks.
This principle is especially relevant for Ireland, in view of our high dependence on the multinational sector and our associated exposures to shifts in technological trends, the international trade environment and global tax regimes. In addition, we have to be mindful of global structural factors, such as climate change and the trend in the long-term interest rate.