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 John Redmond - May 30 29 comments
by DoDo - May 29 11 comments
by Frank Schnittger - May 26 20 comments
by ARGeezer - May 25 22 comments
by Frank Schnittger - May 7 6 comments
by gmoke - May 23
by Frank Schnittger - Apr 30 4 comments
by gmoke - May 15 17 comments
by John Redmond - May 3029 comments
by DoDo - May 2911 comments
by Frank Schnittger - May 2620 comments
by ARGeezer - May 2522 comments
by gmoke - May 23
by Helen - May 1837 comments
by gmoke - May 1517 comments
by Frank Schnittger - May 11268 comments
by Frank Schnittger - May 912 comments
by Frank Schnittger - May 76 comments
by Frank Schnittger - May 61 comment
by Frank Schnittger - May 4
by Frank Schnittger - Apr 304 comments