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The cable also: Highlighted what it called "A Propitious Lack of Monetary Policy Tools".
Maybe debt bubbles are harmless, or, more precisely, less harmful than the cost of preventing them with monetary policy tools.
Stein is wrong in assuming that the Fed has specific monetary policy tools that can surgically attack bubbles.
There has also been quite large volatility in global capital markets recently, and monetary policy tools need to be applied more flexibly".
But the ambassador wrote: "An ironic feature of Ireland's success has been the Government's lack of monetary policy tools, remarked Cormack McCarthy, Chief Executive of the Ulster Bank.
Events could well force Mr Carney's hand, should traditional monetary policy tools (including QE) continue to disappoint and the UK economy continues to stagnate".
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"The committee was using communication — mere words — as its primary monetary policy tool.
"There isn't any fantastically strong monetary policy tool left out there," Mr. Ashworth said.
No other level of government has the borrowing ability, the monetary policy tool-chest, or the confidence of global markets behind it, to keep the fragile economy buoyant.
China's banks have been helped by last month's cut in reserve requirements, another useful monetary policy tool the government can utilise.
Trade-dependent Singapore uses the exchange rate as its primary monetary policy tool, and has slowed the pace of appreciation to try to support growth.
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