Daily Archives: August 15, 2011

Claire Jones

As the IMF knows only too well, groupthink played a key role in policymakers’ inability to spot the risk of a major financial crisis. Could it be that globalisation contributed to this rise of groupthink? Central Bank of Ireland governor Patrick Honohan thinks so.

Since the era of David Ricardo, most – though not all – economists have extolled the virtues of global trade.

Mr Honohan’s comments are far from a damning critique. But the central bank governor points out that globalisation can “turbo charge” booms and busts in small open economies such as Ireland’s. Why? Read more

Claire Jones

The European Central Bank bought €22bn-worth of government debt early last week and in the latter half of the previous week, taking its total purchases through the securities markets programme to €96bn.

€22bn was the largest-ever amount bought in a single seven-day period, which is no great surprise given that the ECB was buying Spanish and Italian debt for the first time (along with Portuguese and Irish government bonds). But it is higher than market expectations of €15bn.

What did the ECB get for its money? Read more