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 Migeru - Jun 26 53 comments
by Frank Schnittger - Jun 25 60 comments
by Bernard - Jun 26 1 comment
by Frank Schnittger - Jun 24 72 comments
by Frank Schnittger - Jun 23 38 comments
by tyronen - Jun 22 38 comments
by Frank Schnittger - Jun 17 34 comments
by Frank Schnittger - Jun 13 62 comments
by Frank Schnittger - Jun 27
by Bernard - Jun 261 comment
by Migeru - Jun 2653 comments
by Frank Schnittger - Jun 2560 comments
by Frank Schnittger - Jun 2472 comments
by Frank Schnittger - Jun 2338 comments
by tyronen - Jun 2238 comments
by John Redmond - Jun 1726 comments
by Frank Schnittger - Jun 1734 comments
by gmoke - Jun 155 comments
by Frank Schnittger - Jun 1362 comments
by DoDo - Jun 1230 comments
by Democrats Ramshield - Jun 104 comments
by generic - Jun 81 comment
by fjallstrom - Jun 81 comment
by DoDo - Jun 647 comments
by ARGeezer - Jun 617 comments
by DoDo - Jun 568 comments
by ARGeezer - Jun 270 comments
by das monde - Jun 222 comments