I heard one of the new TDs on the radio, repeating that well-practiced line about Irish government expenditures/entitlements not really being excessive, since “Ireland is one of the richest countries in Europe.” That was then, this is now (from the Sunday Business Post). Using GNP as a metric, Ireland’s per capita income ranking has fallen sharply, back to where it was prior to the 1990s boom, among the five poorest (or least-rich) countries in western Europe. The Irish government and banking sector are also in receivership, and are dependent upon a recalcitrant EU benefactor. So please, TDs and interest group lobbyists, no more about how we can afford your favourite expenditure since we are one of the richest countries in Europe.
Author: Gregory Connor
Paul Krugman has a thoughtful survey of the Euro crisis in this week’s New York Times Magazine (forthcoming on Sunday but available on-line now). This is not stockbroker-economist-type research, which tends to be long on buzzwords and hyperbole. It is a well-reasoned feature-length review with some policy suggestions. It has a central focus on Ireland and the other troubled peripheral states.
Barry Eichengreen recently wrote an article in a German newspaper aimed squarely at the German business and political elite, castigating them for their hesitancy and lack of generosity toward the Irish bailout. Kevin O’Rourke has provided an English translation, and has described Eichengreen’s article as “magnificent and angry.”
Paul Krugman has a written a blogpost commenting favourably on Kevin O’Rourke’s recent blogpost on irisheconomy.ie.
There are obvious difficulties and constraints on monetary policy in the 16-member Eurozone compared to more fully integrated currency zones like the fifty states of the USA, the ten provinces of Canada, etc. But could the lack of integration in the 16-member eurozone be used advantageously for some types of policies?