Resolving Ireland’s Fiscal Crisis Post author By Philip Lane Post date November 25, 2009 Reminder: the SSISI event is tomorrow evening, details are here. Contributors: Dr Niamh Hardiman (UCD), Mr Blair Horan (CPSU), Mr Colm McCarthy (UCD) and Mr David Croughan (IBEC). The paper by Niamh Hardiman is already online here. Categories In Fiscal Policy Tags SSISI 6 Comments on Resolving Ireland’s Fiscal Crisis ← Accountability → The Fiscal Situation Elsewhere 6 replies on “Resolving Ireland’s Fiscal Crisis” I see in Niamh Hardiman’s paper there is wistful thinking that we can’t devalue. Well we can do the next best thing: A universal 10% pay cut to increase competitiveness by: 10% tax levy on all earned income Rebate that same money to the employer This then gives employers the chance to 1) Cut prices 2) Stanch their bleeding losses 3) Even return it to the employee There are some technical problems around self employed , but they could be resolved A sudden , sharp, short shock like this is preferable to poorly co-ordinated drip-drip deflation. Naturally alongside it minimum wage, SW would have to be similarily cut. Thanks for the reminder Philip. Can I recommend everyone to read Niamh’s paper? Its a really good summary of issues which are extremely important in terms of the implementation of economic policy, even though there is relatively little discussion of economic policy per se. @ David, thanks for the recommendation, I must check it out soon. I agree with Dave Madden, enjoyed Niamh Hardiman’s contribution last night, different angle from economists and worth a look Niamh’s paper is excellent. Comments are closed.