a broad programme of activities aimed at increasing transparency and understanding about the role and work of the central bank, in line with our strategic plan. we are pleased to see local schools represented here today and look forward to welcoming you to the visitor centre. * * * to conclude, i am delighted to share the inauguration of our new campus with so many who have been integral to getting us to this juncture. i would like finally to thank chief operating officer gerry quinn and director of facilities paul molumby, who led the programme from inception to conclusion, with the help of many others who put in extraordinary time and effort over the past four years. i hope that you enjoy visiting our new headquarters today, and i look forward to our new campus enabling us to continue to deliver effectively on our mission. 1 moynihan, maurice ( 1975 ), currency and central banking in ireland 1922 – 60, central bank of ireland and gill and macmillan 2 while the dockland campus places the central bank firmly at the centre of ireland ’ s international financial district, the currency centre, which will remain located in sandyford, continues to be critical to the work of the bank. 3 a chronology of main developments in the central bank of ireland 1943 – 2013. available here. 3 / 3 bis central bankers'speeches

patrick honohan : where did all the money channelled into propertybacked lending go? article by mr patrick honohan, governor of the central bank of ireland, originally published in the irish times on 31 january 2015. * * * accompanying chart can be found at the end of the speech. imagine how the irish economy would have performed if the banks hadn ’ t borrowed all that money to finance property - backed loans. during 2002 – 2007 a vast sum in the order of twice annual gdp ( much of it borrowed from abroad ) was channelled by the banking system into property - backed lending. where did all this money end up? that was the question recently asked by colum kenny in this newspaper, and also addressed to me at the banking inquiry. as we take steps to ensure that there is no return to boom - and - bust conditions, it is indeed timely to revisit this question, which has puzzled many. one approach to answering the question seeks to construct a kind of audit trail. thus some of “ the money ” was paid out for construction work, wages, materials and profits – including bank profits. some was received by those who sold property at high prices. these receipts were in part saved, and in part spent, by the recipients, either leaking out of the country in payment for imports or adding to tax revenue. but that audit trail narrative misses a large part of the story. a fuller answer must take into account the damaging effects the spending of the money had on prices and wages ; on investment patterns and the productive structure of the economy ; on the government ’ s spending and tax rate decisions ; and on the levels of indebtedness of households and firms. the only way of getting to grips with the question from this deeper perspective is to pose it in terms of a clearly - defined counterfactual. imagine how the irish economy would have performed if the banks hadn ’ t borrowed all that money to finance property - backed loans. knowing this will allow us to restate the question “ where did the money go? ” in terms that, while complicated, are amenable to answer. for the difference between the actual and this counterfactual tells us where that money went. start with the capital gains and losses from credit - financed property transactions at what turned out to be evanescent bubble prices. the counterfactual economy would not have seen these transactions which left some sellers richer and many buyers poorer. note that, in principle,