Central Bank plan understandable but risks remain - The National

The altruistic actions of central bankers often have far-reaching and unintended consequences.

Take, for example, the decision of the Irish financial authorities in September 2008 to guarantee all bank deposits in the country.

It was lauded as a splendid move at the time, putting the sovereign's money where its mouth was to halt the collapse of the banking system. But ultimately it led to the bankruptcy of the country and a bailout from the European Union.

* username: rupertbu