Over a VoxEU, Stanley Black suggests a way of breaking the EMU without breaking the Euro.
Fixing the flaws in the Eurozone
- Post author By Richard Tol
- Post date November 23, 2010
The IMF has just released a new Staff Position Note 
Lifting Euro Area Growth: Priorities for Structural Reforms and Governance
[One of the co-authors is Ajai Chopra]
Its recommendations for Ireland are:
1. In relation to the labour market:
- Introduce gradual decrease of benefits over time of unemployment spell and stricter job search requirements
- Provide more resources to the unemployment agencies (FÁS) to provide efficient job search assistance to the growing number of unemployed
- Review the level of minimum wage to make it consistent with the general fall in wages
2. In relation to improving competitiveness:
- Reform planning and licensing systems in net work industries, so as to increase competition in sheltered services sectors
- Focus public resources on high-priority projects in the knowledge-based economy
The completely nebulous nature of last night’s annoucements in relation to bank restructuring means we are no wiser today than yesterday about what is actually going to happen with our banks. However, the following statement from Michael Noonan (not a man given to reckless speculation, I would venture) is worth discussing:
Fine Gael finance spokesman Michael Noonan said there may be conflict between European officials and the International Monetary Fund the restructuring of Ireland’s banks.
Mr Noonan said the IMF may favour more burden sharing with bank bond holders than European officials as a condition of aiding Ireland.
As is this article by John McManus.
The statement is available here.
In the last 2 years or more, serious academic economists such as Morgan Kelly, Karl Whelan and other contributors to this blog have been subject to a campaign of anti-intellectual abuse by the ‘leaders’ of public opinion in Ireland. The ad hominem attacks on Brian Lucey were unforgiveable. Some of these opinion formers (those who work in the financial services sector) may shortly be unemployed. Those who remain should be shunned, certainly by academics.
However one name sticks out – former Taoiseach Garret Fitzgerald. Let me make my personal position clear: I can think of almost no one in Irish public life whom I have admired more. Let us not also forget that he served as a faculty member of the economics department in UCD for part of his career. Consequently, his “gratuitously condescending comments….. regarding the NAMA dissenters”, to quote Kevin O’Rourke earlier today, were particularly puzzling.
Garret, I know you have the dignity to restore your reputation. Now do so.