Former Irish ECB Governor

Patrick Honohan talks about why he would prefer more ECB QE to deeper negative rates, and what the Irish experience leads him to expect for future European bank bail-ins.

by Patrick Honohan 26 Jun 2019

The ECB should expand sovereign bond QE via easing self-imposed constraints rather than buy bank bonds or introduce tiering of negative rates, says Patrick Honohan, former Governor of the Central Bank of Ireland and member of the ECB governing council, and currently a senior fellow at the Peterson Institute for International Economics. Honohan also goes through key lessons of the Irish crisis, particularly the difficulty of bailing in private investors, and the challenge of potentially applying the new bail-in rules to larger, more complex banks in the future. His new book is on Currency, Credit and Crisis: Central Banking in Ireland and Europe, and offers a detailed analytical narrative of the Irish crisis and policymakers' conduct during its most fraught moments. 

Patrick Honohan spoke to Beat Siegenthaler of the UBS Knowledge Network in Frankfurt on June 26.

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