Overall real GDP growth rates – previously flattered significantly by the activities of multinational corporations – were in the early 2000s being recorded at around 5 per cent per annum, levels which, by this stage, were now attained largely because of the construction boom.1 Role of bank credit Qualitatively similar features to the Irish boom were also in evidence in other countries in those years.
As I explained, a variety of analytical tools, including optimal control techniques and simple policy rules, can serve as useful benchmarks. Based on such analysis, I consider a highly accommodative policy stance to be appropriate in present circumstances. But considerable uncertainty surrounds the outlook, and I remain prepared to adjust my policy views in response to incoming information.