measures in meeting their objectives during the autumn. be prepared, but prepared to act the variety of these macro - prudential tools provide flexibility that may be required in response to many shocks, domestic or global. standing alone, a disorderly brexit would argue for accommodative policies, for example allowing the automatic stabilisers to work and targeted fiscal measures for the most severely affected sectors. if any of the more global risks were to crystallise and have a significant effect on the domestic economy, they would likely pose different challenges. whether it be dealing with the effects of storms blowing in from abroad, or having protection from the sun on those warm irish summer days, the central bank stands ready to adjust the ccyb ( buffer ) in either direction as the risk environment evolves, in order to support a sustainable supply of credit to the economy. we can ’ t control the weather. but we must ensure the system is resilient, and continues to function into the future, come rain, hail or shine. finally, i hope you will allow me take the liberty of speaking at an event like macgill to briefly look beyond the central bank tool kit. as policymakers, we serve the irish public, the risks we face often overlap. and it is beneficial for all when our policy responses are in tune. while the domestic economy is doing well, we have the opportunity to boost our resilience to future shocks and risks. prudent management of the public finances are needed. interest payments on national debt are lower than expected and corporate tax receipts are high, but neither situation should be regarded as permanent14. these funds should be put to work to buffer against the next downturn or crisis and not to finance current expenditure or to boost an economy which is close to capacity. a clear strategy guiding the use of unanticipated revenue inflows should be promptly established. moreover, the reduction of public debt ought to remain a key priority given its very high level. to somewhat labour the analogy, we must ‘ fix the roof while the sun is shining ’. final points finally, as i said at the beginning, the global environment is uncertain, and with brexit looming, we should be ready to respond if these risks materialise. but it is imperative that we are nimble and ready to cool the warming economy if these risks dissipate. we must not only be prepared, but prepared to act. 1 i would like to thank caroline

mehigan and micheal o ’ keeffe for their contribution to my remarks. 2 donnery, sharon : risks and resilience in uncertain times, address to the institute of international and european affairs ( 8 march 2019 ). 3 central bank of ireland : financial stability review ( 2019 : 1 ). 4 donnery, sharon : the departure of the uk from the eu – implications for the irish economy and financial system. internal dinner address to visiting staff from other central banks ( 5 march 2019 ). 5 / 6 bis central bankers'speeches 5 central bank of ireland : brexit task force reports. 6 national institute of economic and social research : the economic effects of the government ’ s proposed brexit deal ( 26 november 2018 ) assume that sterling would depreciate against the euro by ten per cent while in a worst case stress scenario published by the bank of england it is assumed that sterling could fall by 30 % against the usd in a disorderly brexit. bank of england : stress testing the uk banking system : key elements of the 2019 annual cyclical scenario ( march 2019 ). 7 conefrey, o ’ reilly, walsh : box b : the macroeconomic implications of a disorderly brexit central bank of ireland, quarterly bulletin no. 1 ( 2019 ). 8 birmingham & conefrey : the irish macroeconomic response to an external shock with an application to stress testing, technical research paper, central bank of ireland ( 2011 ). 9 byrne, stephen and tara mcindoe - calder : quarterly bulletin 2019 q2, central bank of ireland ( 2019 ). 10 ibid. 11 the revenue commissioners : corporation tax 2018 payments and 2017 returns ( may 2019 ). 12 lane, philip : tail risks and the irish economy ( 2019 ). 13 central bank of ireland : financial stability review, 2019 : 1 ( 2019 ). 14 irish fiscal advisory council : fiscal assessment report ( june 2019 ). 6 / 6 bis central bankers'speeches