The IMF has released the October 2010 World Economic Outlook. Chapter 3 studies the effects of fiscal consolidations on economic activity.
Year: 2010
Another day, another committee. Forfas has established a high-level group to identify research priorities for Ireland. The group’s composition suggests that its recommendations will be demand-driven. Research is no good, however, unless it is top class. Ireland should research those things at which it can beat the world — and import all other knowledge.
Batt O’Keeffe reminds us that economic growth and job creation are driven by technological progress but forgets that this is true in the medium- to long-term. In the short-term, other factors are more important, as reported earlier by John McManus. Ronnie O’Toole adds that it is all good and well to focus on the export sector, but that the domestic sector urgently needs to be smartened up too — through regulatory reform rather than by spending money we don’t have.
The BBC has been leading its bulletins this morning on the latest statement by Minister Lenihan. He gave an extensive interview on the influential Today programme on Radio 4. Listeners can make their own assessment of its tone by listening to it at http://news.bbc.co.uk/today/hi/today/newsid_9047000/9047087.stm
You might be alarmed to learn that the BBC headlines the interview on its website as “Lenihan: Ireland ‘can’t print money'”. Is the Minister restarting his midnight visits to Dave McWilliams gaff?
The statement by Brian Lenihan is here.
The Central Bank statement is below, while the detailed statement on Anglo-Irish is here and the detailed statement on capital requirements for Irish banks is here.
The Central Bank today (Thursday 30 September) published its assessment of the capital requirements resulting from the recently announced restructuring of Anglo Irish Bank.
In addition, the Central Bank has published the outcome of its review of the capital requirements of those Irish banks subject to the Prudential Capital Assessment Review (PCAR) exercise, in light of the estimated remaining haircuts to be applied by NAMA.
Anglo Irish Bank Restructuring
The Central Bank has assessed the injection of capital needed to meet minimum regulatory requirements under both a base, or central, scenario, taking account of expected losses, and under a severe hypothetical stress scenario.
This assessment has been applied to both the proposed Funding Bank and the Asset Recovery Bank that will be created. The total capital required for both institutions under the base, or expected loss, scenario is €29.3billion.
Under the stress scenario, in the event that unexpected additional losses are incurred, the Central Bank estimates that an additional €5 billion of capital could potentially be required.