My TCD colleague John O’Hagan provides a wide-ranging analysis of the fiscal and economic situation in today’s Sunday Business Post: you can read it here.
As of today, this site has received 500,000 visits since it began in December 2008, an average of 3,095 per day. These visits have involved 1.39 million page views. In terms of geography, 68 percent are resident in Ireland and 32 percent view the site from the rest of the world.
This CREI report by Bruno Cassiman is an accessible overview of this link between scientific research and innovation.
Eurointelligence today carries an interesting news report
Sweden proposes stability tax
The Swedish finance minister Anders Borgh has written to his EU colleagues in favour a stability tax levied on banks who proceeds could be used for future bail-outs. Sweden has already imposed a tax of 0.0036% of bank liabilities. FT Deutschland points out that this is not a Tobin tax on bank transactions. Sweden has introduced this tax this year, and expects the revenue from this tax to grow to 2.5% of GDP in fifteen years.
Such a ‘rainy day’ fund would have been helpful during the current crisis (although there is a classic moral hazard counter-argument). Indeed, I had previously suggested the establishment of such a fund as part of Ireland’s preparations for EMU membership, given the fiscal costs that accrue in the event of banking crisis. My contribution can be downloaded here. The difference is that the Swedish fund is financed by a tax on the banking sector, whereas I had in mind a fund to be accumulated from general tax revenues.
Eurostat has determined that NAMA falls outside the general government sector: see the materials here.
Update: The SIV framework is puzzling some readers, especially the role of private equity investors. A handy primer is provided here and this report highlights that payouts from SIVs are typically skewed towards debt and management fees, with only a limited allocation to equity investors.