The Irish Economy
There appears to be a complete imbalance in the monetary balance of the Non Financial Corporation Sector. Table A1, Loans 85 billions, Deposits 30 billions. Imbalance 55 billion.
What are the reasons for this?
Are NFCs borrowing in Ireland but lodging all surplus cash outside Ireland?
Deleveraging, of course, continues to wreak havoc.
Table A1, columns 1 and 5 show a total deleveraging of approx 8 billion in 2012, twice the amount of any fiscal adjustment. Purchasing power is being hoovered up out of the Irish economy.
The sheer size and recklessness of deleveraging borders on the criminal.
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