gabriel makhlouf : publication of the financial stability review 2023 : 2 opening remarks by mr gabriel makhlouf, governor of the central bank of ireland, on the publication of the financial stability review 2023 : 2, dublin, 23 november 2023. * * * welcome to the central bank of ireland for the release of the second financial stability review of 2023. our assessment of the financial stability outlook continues to be shaped by the ongoing adjustment of the global economy to higher interest rates. since our last review in june, inflation has fallen in many economies, but we remain some way from our target. we have not yet seen the full extent of the lagged effect of monetary policy actions on borrower finances or economic demand. in a setting where long - term interest rates have risen since june, despite some moderation in recent weeks, global financial markets remain vulnerable to bouts of volatility. the global economy also remains vulnerable to further shocks. we have already seen a pandemic and a war in europe. humility is therefore a prerequisite to good policymaking. geopolitical tensions, signs of fragmentation of the global economy and extreme weather events are three potential sources of future shocks with consequences for policy. against this backdrop, it is imperative that we maintain resilience while we have scope to do so. what does this mean for an open economy like ireland? this question is top of mind for us at the central bank. the irish economy has continued to expand since the last review, albeit at a slowing pace. the labour market remains tight, with strong wage growth. however, we must also acknowledge that a range of previously - flagged risks are now closer to materialising than in june. commercial real estate prices have now fallen more than 20 per cent since mid - 2020, while slowing exports and corporation tax receipts may mark the beginnings of a weaker global economy feeding its way through to ireland. the lagged effect of monetary policy actions remains a source of uncertainty for the domestic economy, as the financial system continues to pass through higher interest rates gradually to borrowers and depositors. despite these emerging signals of risks crystallising, the domestic household, business and banking sectors continue to demonstrate resilience in aggregate, with a strong labour market being a key factor. low levels of debt, prudent and appropriate macroprudential policy, and the fixed borrowing costs for many are also supporting resilience to the shock. again, we must now acknowledge

gabriel makhlouf : remarks on the occasion of the publication of “ love you ” remarks by mr gabriel makhlouf, governor of the central bank of ireland, on the occasion of the publication “ love you : public policy for intergenerational wellbeing ” by girol karacaoglu, 17 february 2021. * * * good morning and good evening. it ’ s a pleasure to join you at this book launch, and to congratulate the publishers and of course the author, my good friend girol karacaoglu. i ’ m particularly pleased to have been asked to say a few words on the background and context for the wellbeing work programme ; it ’ s been a good opportunity to reflect on that part of the journey that ’ s now about a decade old, although much older overall and in many ways still young. wellbeing has been a focus of economic policy for a very long time but i ’ ll take 2011, the year girol joined the treasury, as my starting point for today. i became treasury secretary earlier that year, a week after my predecessor – john whitehead – spoke at the publication of a treasury paper on the living standards framework saying, quite rightly, that work on wellbeing was not new but one of the aims of the paper was “ to provide some clarity around the ultimate aims of [ the treasury ’ s ] work ”. the framework may not have been new but i felt its time had come, for a number of reasons : economics was going through another intellectual turbulence, at least in the western world, triggered by the global financial crisis and reflecting an emerging recognition that traditional policy approaches were unlikely to be adequate to confront the complex challenges of the modern era, such as the impact of deep international interconnectedness, technological and climate change, along with growing social disconnection and lack of trust in established institutions ; for me it was noticeable that the emerging recognition of the need for different policy approaches was not reflected in the dominant public policy narrative in new zealand at the time. commentators and policy practitioners appeared to be trapped in a frame of reference that seemed to me at best to be outdated ; apart from the treasury ’ s 2011 paper, joe stiglitz, amartya sen and jean - paul fitoussi ’ s 2009 report had helped shape my thinking, as had the australian treasury ’ s own wellbeing framework ( and i recall david gruen coming to wellington in 2011 to talk about their work