This Irish Times article reports Morgan Kelly’s keynote ISNE lecture where he discussed debt forgiveness and, in particular, mortgage debt relief. From the piece:
“We are talking sums in the region of €5 billion to €6 billion which would be necessary to spend on mortgage forgiveness, which by our standards are not very large,” he said.
“This sum to sort out tens of thousands of people with big problems does not seem enormous.”
Seamus Coffey has some thoughts on Prof Kelly’s argument here.
Readers should know I’m in favour of debt forgiveness for households, and have been for some time. It may be worth discussing the pros and cons of such a policy again.
Update: Jagdip has some thoughts on this debate on NamaWineLake.