Paul Krugman links to this New York Times piece on Ireland’s recent experience with austerity, which reminds me to link to something Seamus Coffey wrote recently on exactly how much austerity we’ve endured. Seamus goes beneath the headline 21 billion and looks at where cuts have actually (or probably actually, this isn’t an exact science) happened. He finds the figure should be closer to
10 12 billion euros.
Krugman’s point is more basic than Seamus’, because most of the people reading this blog in Ireland probably know the difference between GDP and GNP in our context. Here’s the monthly economic bulletin (.pdf) from the Department of Finance. We can see the difference in GDP and GNP right away from the table I reproduce below which shows percentage changes by quarter. We can also see the effects on the elements of GDP and GNP here.