Monetary Matters with Jack Farley

The Central Bank As Crisis Manager | Dr. Patrick Honohan, former Central Bank of Ireland Governor, on Crisis Management, Macroeconomic Shocks, & Tariffs

Feb 16, 2025

Dr. Patrick Honohan, an honorary professor of economics at Trinity College Dublin and former governor of the Central Bank of Ireland, shares insights from his book on crisis management. He discusses the evolving role of central banks in crisis scenarios, emphasizing the need for proactive strategies over reactive measures. Honohan uses case studies, including the Credit Suisse-UBS takeover, to illustrate strategic communication and preparedness. He also critiques the implications of tariffs on global economies, urging a deeper understanding of their complex impacts.

01:19:42

Episode guests

Dr. Patrick Honohan

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Episode notes

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Quick takeaways

Central banks must evolve their crisis management strategies, moving beyond traditional focuses to proactively prepare for financial turmoil.

Effective communication is critical during a crisis, requiring reassurance and clarity while also conveying the gravity of the situation.

Collaboration between central banks and governments is essential for effective responses to crises, ensuring swift action and resource allocation.

Deep dives

The Role of Central Banks in Crisis Management

Central banks traditionally focus on price stability and economic growth, but it is essential for them to anticipate and prepare for financial crises. Historically, central banks have often been caught off guard during crises, forced to react rather than proactively manage the situation. The key is understanding that crises are complex and require different responses compared to standard economic conditions. By rehearsing crisis management techniques and developing alternative responses, central banks can navigate financial turmoil more effectively.

Intro

3min

Central Banks in Crisis Management

14min

Navigating Crisis: The Importance of Strategic Preparedness

2min

Swiss National Bank Decisions in Crisis

5min

Central Banking and Financial Crisis Dynamics

25min

Navigating Bank Crisis Management

8min

Understanding Tariffs and Financial Crises

23min

This Monetary Matters episode is brought to you by VanEck.

Learn more about VanEck Uranium & Nuclear ETF: http://vaneck.com/NLRJack

Dr. Patrick Honohan, honorary professor of economics at Trinity College Dublin and nonresident senior fellow Peterson Institute for International Economics, joins Monetary Matters to share lessons from his latest book, “The Central Bank as Crisis Manager.” Looking at financial and macroeconomic crises from countries ranging from Iceland, Switzerland, and the U.S., to his native Ireland (where he was the governor of its Central Bank from 2009 to 2015), Honohan concludes that central banks must prepare to fight and manage crises in addition to their ordinary mandate of price stability (and, in the case of the Fed, maximum employment). Recorded on February 5, 2025.

Honohan’s Book, “The Central Bank as Crisis Manager” on Columbia Press: https://www.piie.com/bookstore/2024/central-bank-crisis-manager

Honohan’s Book, “The Central Bank as Crisis Manager” on Amazon: https://www.amazon.com/Central-Bank-Crisis-Manager/dp/0881327530

Honohan’s Previous Book, “Currency, Credit and Crisis: Central Banking in Ireland and Europe”:

https://www.amazon.com/Currency-Credit-Crisis-Central-Macroeconomic-ebook/dp/B07R699LFV/?_encoding=UTF8&pd_rd_w=zS3eY&content-id=amzn1.sym.bc3ba8d1-5076-4ab7-9ba8-a5c6211e002d&pf_rd_p=bc3ba8d1-5076-4ab7-9ba8-a5c6211e002d&pf_rd_r=146-4087044-9452813&pd_rd_wg=rdvDv&pd_rd_r=18882405-c569-4216-9a47-f7da59ed6d66&ref_=aufs_ap_sc_dsk

Follow Patrick Honohan on Twitter https://x.com/PHonohan

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Monetary Matters with Jack Farley

The Central Bank As Crisis Manager | Dr. Patrick Honohan, former Central Bank of Ireland Governor, on Crisis Management, Macroeconomic Shocks, & Tariffs

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

The Role of Central Banks in Crisis Management

The Differences Between Normal Policy and Crisis Response

Understanding the Complexity of Financial Crises

The Importance of Central Bank and Government Cooperation

Lessons from Recent Financial Events

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Monetary Matters with Jack Farley

The Central Bank As Crisis Manager | Dr. Patrick Honohan, former Central Bank of Ireland Governor, on Crisis Management, Macroeconomic Shocks, & Tariffs

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

The Role of Central Banks in Crisis Management

The Differences Between Normal Policy and Crisis Response

Understanding the Complexity of Financial Crises

The Importance of Central Bank and Government Cooperation

Lessons from Recent Financial Events

Get the Snipdpodcast app

AI-poweredpodcast player

Discoverhighlights

Save anymoment

Share& Export

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