Someone called Maeve Sheehan has a piece in today’s Sunday Independent describing how I appear in Department of Finance Secretary General Kevin Cardiff’s diary as giving a seminar at the Department. I did give such a seminar, on September 17.
Ms. Sheehan describes me as follows “Professor Karl Whelan, another UCD economist, who has argued the case for default.”
I am genuinely unsure what Ms. Sheehan is referring to here. But I thought I’d use this forum to clarify that I have never advocated default on Irish sovereign debt. In addition, I have only ever discussed the idea of bank bonds being defaulted on in the context of legal provisions that allow for such defaults when a bank is insolvent or in the context of internationally-accepted special resolution regimes, which allow for an orderly approach to dealing with bank creditors when a bank is insolvent and which generally contain many protections for such creditors.
Also, because the above sentence could be radically misunderstood if one made the easy mistake of missing the word “has”, I would also like to clarify that at no point during my seminar at the Department of Finance on September 17 did I advocate default on either sovereign or bank bonds.