by effective bank regulation. if so, the post - crisis period of fiscal contraction could have been wholly avoided. ( chart ) inequality in boom and bust ( i ) income it ’ s one thing to say that aggregate economic activity was protected by the irish government as well as might be, but another to say that the income and capital losses were distributed in an equitable manner. at first sight, the situation here might not seem too inegalitarian. for example, while the gini coefficient of market income jumped in 2008 and 2009 and by 2012 was still notably higher than it had been during the boom, the gini for disposable income, after taking account of income - related taxes and social payments, hardly moved and indeed reached a lower level by 2012 than it had eight years earlier. [ charts : gini and poverty ] likewise for relative poverty lines : while the poverty count ( at the 50 % threshold ) measured on market income increased in the crisis ; poverty rates measured on disposable income fell. bis central bankers ’ speeches the contrasting movements of the gini on gross and net income reflect the degree to which reductions in social payments were limited in the fiscal cutback, and also the progressive tone of income - related tax changes in the downturn. the irish tax - and - welfare system held relative poverty rates to levels comparable to those of the uk, for example, despite a much steeper increase in comparable market divergences in ireland ( likely reflecting the much steeper jump in unemployment to almost 15 per cent in ireland by 2012. ) still, a proportional lowering of income surely means a more severe welfare impact on lower income groups. the fact that the irish macroeconomic correction has not worsened measures such as gini or relative inequality should not be interpreted as saying that the burden has been shared equitably. inequality in boom and bust ( ii ) wealth and these income calculations do not take account of the capital losses incurred especially by those who had leveraged themselves near the top of the market to buy residential property and other assets ( such as bank shares! ) that subsequently slumped in price. there are areas of concentration. households too uncreditworthy to have access to borrowing escaped this dimension of the boom and bust : this dimension to the downturn is not evidently correlated with that of income changes. residential property losses are disproportionately found in certain age groups, notably those now in their late 30s and early 40s. not everyone lost

the risks posed by the nancial system and in turn helps consumers and the nancial services industry understand our approach to regulation. we are undertaking a review of our engagement to identify best practice in this area. we want to ensure we have a consistent, comprehensive and inclusive approach to how we engage and who we engage with. we want to make a step - change in our engagement across the board, covering all of our mandate, from monetary policy, to macroprudential policy, to consumer protection. you will see this in the review of the ecb ’ s monetary policy strategy. you will see this in the review of the consumer protection code. you will see this in our work on nancial stability. you will see this in our presence around the country. and you will see this in the interactions we have with the nancial services industry as we aim to deliver a resilient nancial system that serves the wider economy. conclusion to conclude, the outlook for the economy remains positive in the short term. some moderation in underlying domestic demand growth is likely while some signi cant risks remain. the focus of my remarks has been about the decade ahead. we all know that the nancial system is evolving and that the challenges for the nancial sector are also evolving. as i said earlier, successful economies need to have stable and sustainable macroeconomic frameworks and sound monetary policy that delivers predictable prices. they also need stable and well - regulated nancial systems and well - functioning markets. the central bank will continue to focus on stable and sustainable frameworks, on sound monetary policy, and on a well regulated nancial system, in ireland and in europe. we will ensure that the nancial system of the future continues to operate in the best interests of consumers and the wider economy. thank you. for details of the event, see here. the deterioration in consumer sentiment in recent years suggests that brexit has weighed on con dence. according to the kbc consumer sentiment index, irish consumer sentiment improved for a second successive month in december, largely re ecting the reduced near term risk that the uk might crash out of the eu. see central bank of ireland quarterly bulletin 2020 q1 for further details. the latest data from the central statistics of ce shows that the unemployment rate was 4. 8 per cent in january 2020. byrne, s. and mcindoe - calder, t., employment growth : where do we go from here?, quarterly bulletin 2019. see central