Comments on: Holding our nerve http://www.irisheconomy.ie/index.php/2009/01/19/holding-our-nerve/ Wed, 16 May 2012 21:36:41 +0000 http://wordpress.org/?v=2.6.3 By: Confidence Building Sector Facing Collapse « Views from the Lifeboat http://www.irisheconomy.ie/index.php/2009/01/19/holding-our-nerve/#comment-94261 Confidence Building Sector Facing Collapse « Views from the Lifeboat Thu, 18 Nov 2010 09:43:53 +0000 http://www.irisheconomy.ie/?p=354#comment-94261 [...] in the coherence and feasibility of the overall economic policy strategy for recovery.” http://www.irisheconomy.ie/index.php/2009/01/19/holding-our-nerve/ Honohan: "We need to build confidence in our incoherent and unfeasible economic [...] [...] in the coherence and feasibility of the overall economic policy strategy for recovery.” http://www.irisheconomy.ie/index.php/2009/01/19/holding-our-nerve/ Honohan: "We need to build confidence in our incoherent and unfeasible economic [...]

]]> By: Honohan : On guarantee before appointment http://www.irisheconomy.ie/index.php/2009/01/19/holding-our-nerve/#comment-64924 Honohan : On guarantee before appointment Tue, 17 Aug 2010 06:32:54 +0000 http://www.irisheconomy.ie/?p=354#comment-64924 [...] have on the market. Some interesting comments he made before his appointment as head of the CB. The Irish Economy Blog Archive Holding our nerve [...] [...] have on the market. Some interesting comments he made before his appointment as head of the CB. The Irish Economy Blog Archive Holding our nerve [...]

]]> By: Patrick Honohan http://www.irisheconomy.ie/index.php/2009/01/19/holding-our-nerve/#comment-325 Patrick Honohan Tue, 20 Jan 2009 08:34:39 +0000 http://www.irisheconomy.ie/?p=354#comment-325 Read on Christy, there's plenty of what you are looking for in previous postings and in the conference proceedings and other papers cited. Read on Christy, there’s plenty of what you are looking for in previous postings and in the conference proceedings and other papers cited.

]]> By: Christy http://www.irisheconomy.ie/index.php/2009/01/19/holding-our-nerve/#comment-319 Christy Tue, 20 Jan 2009 00:33:42 +0000 http://www.irisheconomy.ie/?p=354#comment-319 Patrick and James, What would be the specifics of such a plan? I mean it seems a bit easy to say “we need a plan” that people will buy in to. For example, What taxes, if any, should be raised and by how much? How much extra revenue would such changes raise? (assuming for example a 4% fall in GDP) What spending, besides perhaps the 5% cut in public servant pay (perhaps excluding a proportion on low incomes?) should be cut? What savings are possible/likely here? What is the largest size deficit that we can run without risking serious reaction on capital markets? What is the desirable size of this deficit, given a potential/likely significant reduction in private sector demand? What should be the balance between current and capital cuts? What should be done about the banks? It would appear that full nationalisation of the sector is now a serious candidate for the policy choice. Is this a good idea? If so, on what terms? If so, should bad debts be rolled up in a bad bank with the hope of re privatising the banks as quickly as possible? Will this help avoid the drip feeding of public money into zombies? Should the sector be consolidated? If so, what is the best new arrangement? Saying we need a proper plan is almost surely correct but is of little use, unless you go ahead and propose such a plan, including the details. Such a proposal could serve as a benchmark – i.e. this is what one/two of our leading economists think we should do. Is it acceptable to stakeholders? If not, which parts? Etc. Christy Patrick and James,
What would be the specifics of such a plan? I mean it seems a bit easy to say “we need a plan” that people will buy in to.

For example,

What taxes, if any, should be raised and by how much? How much extra revenue would such changes raise? (assuming for example a 4% fall in GDP)

What spending, besides perhaps the 5% cut in public servant pay (perhaps excluding a proportion on low incomes?) should be cut? What savings are possible/likely here?

What is the largest size deficit that we can run without risking serious reaction on capital markets? What is the desirable size of this deficit, given a potential/likely significant reduction in private sector demand? What should be the balance between current and capital cuts?

What should be done about the banks? It would appear that full nationalisation of the sector is now a serious candidate for the policy choice. Is this a good idea? If so, on what terms? If so, should bad debts be rolled up in a bad bank with the hope of re privatising the banks as quickly as possible? Will this help avoid the drip feeding of public money into zombies? Should the sector be consolidated? If so, what is the best new arrangement?

Saying we need a proper plan is almost surely correct but is of little use, unless you go ahead and propose such a plan, including the details. Such a proposal could serve as a benchmark – i.e. this is what one/two of our leading economists think we should do. Is it acceptable to stakeholders? If not, which parts? Etc.

Christy

]]> By: James http://www.irisheconomy.ie/index.php/2009/01/19/holding-our-nerve/#comment-301 James Mon, 19 Jan 2009 17:00:27 +0000 http://www.irisheconomy.ie/?p=354#comment-301 Our CDS has also widened to 256.2bps from 220bps Friday. The government has yet to convince the markets that is able to handle an the fiscal fallout from an economic crisis and a banking recapitalizations. I think this should be the governments number 1 priority. Otherwise when we need money in 6 months time it just won't be available to us. Our CDS has also widened to 256.2bps from 220bps Friday.

The government has yet to convince the markets that is able to handle an the fiscal fallout from an economic crisis and a banking recapitalizations.

I think this should be the governments number 1 priority. Otherwise when we need money in 6 months time it just won’t be available to us.

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