The Central Bank of Ireland introduced caps on loan-to-value (LTV) and loan-to-income (LTI) ratios in early 2015. Both the introduction of the measures and the first review in 2016, threw up some interesting challenges, some of which I would like to share with you today.
What institutional design could provide incentives to minimize dependence on the Federation Account or ensure efficient deployment of such resources in a measurable and monitorable manner? Alternatively, how could the law help to unleash competition among states and restore the umbilical cord between business and government at the state level? Governments usually depend on businesses to pay taxes and create jobs.