The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
In the case of Ireland, if you think Ireland is solvent, then it is in fact being subjected to an irrational run (withdrawal of short-term liquidity). The proper response in that case is for the Central Bank to provide liquidity at a reasonable non-market rate.
Instead of that the Central Bank tells the Irish government to call in the IMF.
Also, when the European Council tries to organise a collective fiscal facility, Germany screams "no bail-out clause!". When the ECB tries to buy sovereign bonds in the secondary market, the (German) Chief Economist and the Bundesbank chair wrongly claim that is forbidden by treaty (the treaty forbids buying at issue, which is bad enough already). The European Commission, Council, Ecofin and Central Bank are all such neoliberal market-worshippers that they actually take the market's assessment of Ireland's solvency at face value.
The Irish "rescue package" entails, under any plausible scenarios, including the ones put together by the Ecofin, an actual increase in the Irish debt burden, while at the same time demanding IMF-style "conditionalities". Some "rescue". No wonder the Irish government didn't want to be "rescued" and had to be forced.
Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman
by DoDo - Oct 5 7 comments
by gmoke - Oct 1 4 comments
by Luis de Sousa - Sep 28 26 comments
by Frank Schnittger - Oct 5 2 comments
by Frank Schnittger - Sep 24 19 comments
by ATinNM - Sep 24 16 comments
by DoDo - Sep 12 26 comments
by DoDo - Sep 10 23 comments
by DoDo - Oct 57 comments
by Frank Schnittger - Oct 52 comments
by gmoke - Oct 14 comments
by Luis de Sousa - Sep 2826 comments
by ATinNM - Sep 2416 comments
by Frank Schnittger - Sep 2419 comments
by gmoke - Sep 23
by DoDo - Sep 1226 comments
by DoDo - Sep 1023 comments