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Does Ireland have a case for an EU bailout?

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    #32
    Économiste Monétaire
    Closed Accounts Posts: 2,208 ✭✭✭Économiste Monétaire


    dan719 wrote: »
    Today the Euro is an established currency with all monetary policy directed by the ECB(headed by Jean Claude Trichet) at Brussels.
    ... The ECB is in Frankfurt.
    dan719 wrote: »
    The ECB has the sole mandate of maintaining price stability and this leads to what is described as a conservative or monetarist policy of interest rates.(Has this been abandoned recently with the advent of the global recession).
    A monetarist approach, i.e. 20th Century Monetarists such as Milton Friedman, argued for rigid control of monetary aggregates. Monetarist policy of interest rates... what? Market interest rate manipulation didn’t occur before the ‘80s? It’s actually a primary mandate of price stability, to be specific. The ECB statutes give scope to "general economic considerations," as secondary thought. The increase in the balance sheet is in response to stressed unsecured money markets transactions; I don't see how that's abandoning inflation targeting.
    dan719 wrote: »
    In recent years the ECB has been criticised by some Irish critics for maintaining low interest rates which contributed to the property bubble(and eventual collapse which devastated public revenues-20% of forecast revenue was dependent on 96,000 houses being built AND sold every year).
    And a time series of MFI prime interest rates, and the marginal rate on variable tenders, looks like what compared to Irish HICP?
    dan719 wrote: »
    It is important for us to remember that as a small economic region on the periphery of Europe our influence over the ECB is basically nill. (One of the main reasons for the formation of the ECB was to remove monetary policy from political influence)
    An independent central bank was a prerequisite to having German support. It was a benefit of the Euro for countries with historical poor monetary policy implementation, e.g. France, Italy in the '70s.
    dan719 wrote: »
    as well as increase in access to foreign (eurozone) markets.
    Source? Baldwin type medium-term growth from integration?
    dan719 wrote: »
    On a macro-level the euro has led to the creation of a large, deep pool of capital(currently debatable due to the Credit Crunch),
    How is that debatable?


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    #33
    truthflyer
    Registered Users Posts: 36 ✭truthflyer


    Daithinski wrote: »
    Just to put the cat among the pigeons...:P

    Is Ireland entitled to a bailout from the EU for our imploding economy?

    It could be argued that our membership of the EU has been a major part in our Celtic "Bubble".

    They EU pumped money into Ireland with numerous grants (not sure how much in money terms) maybe this influx of cash could have been managed better so as not to overheat our economy.

    When the EU set the ECB rate low at a time when our economy was overheating and needed a raise rather than a cut, this drove inflation and in particular house prices soaring.

    Their decisions on ECB rate was for the greater good of Europe as a whole who were not "booming" (due to EU grants and availability of cheap loans).

    These two factors fueled the bubble and in turn the collapse of our economy.

    We are now seeing the impact for these mistakes in our current economic situation. Was the EU grant aid mismanaged ie introduced to quickly into the economy? Should we now pay the price for problems at least in part created by the ECB's low interest rate?

    Other EU countries are in recession also but we are at least twice as badly off as these countries.

    Would it be reasonable to expect the EU to give Ireland a dig out due to the circumstances laid out above?

    Or did the EU just give us enough rope for our incompetent politicians to hang the Irish Public with?

    So let me get this straight, it's Europes fault for giving us all that money that WE could not manage.......LOL

    WE had the most amount of money from our Euro friends and yet we have nothing to show for it now but HUGH debt's, and lots more to come till the country goes bankrupt.

    The government would struggle to manage a piss up in a brewery!


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    #34
    blinding
    Banned (with Prison Access) Posts: 7,466 ✭✭✭blinding


    truthflyer wrote: »
    So let me get this straight, it's Europes fault for giving us all that money that WE could not manage.......LOL

    WE had the most amount of money from our Euro friends and yet we have nothing to show for it now but HUGH debt's, and lots more to come till the country goes bankrupt.

    The government would struggle to manage a piss up in a brewery!
    The politicians,bankers and the big builders have had, and are continuing to have lavish pissups at our expenses and why would'nt they as we do nothing to stop them.
    Fool us once shame on them. Fool us all the time shame on us.


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    #35
    thebigcheese22
    Registered Users Posts: 1,379 ✭✭✭thebigcheese22


    Apparantly the G8 are talking about bailing out this country to make sure we don't end up like Iceland...

    Dunno if thats good news - that people care about us, or bad news - that we're fooked without help?! :confused:


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    #36
    NewDubliner
    Closed Accounts Posts: 1,615 ✭✭✭NewDubliner


    thebigcheese22 wrote: »
    Apparantly the G8 are talking about bailing out this country to make sure we don't end up like Iceland...
    Source of this info?


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    #37
    Mr.Micro
    Registered Users Posts: 5,336 ✭✭✭Mr.Micro


    thebigcheese22 wrote: »
    Apparantly the G8 are talking about bailing out this country to make sure we don't end up like Iceland...

    Dunno if thats good news - that people care about us, or bad news - that we're fooked without help?! :confused:

    If that's true then they have no confidence in the Government of this country and ordinarily it would be the IMF in charge now but for our EU membership. Way to go FF/Greens our credibility is long gone. Must be real tough Biffo and Lenihan making big decisions, when the reality is its others making them for the country at the G8 and in the EU.


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    #38
    thebigcheese22
    Registered Users Posts: 1,379 ✭✭✭thebigcheese22


    This

    There was an article specifically mentioning Ireland, I'l try to find it now.


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    #39
    Rebel021
    Registered Users Posts: 943 ✭✭✭Rebel021


    mike65 wrote: »
    Rofles, the EU has bailed this state out to the tune of 30 Billion euro since 1973. Just be glad they aren't asking for it all back. :p

    I wonder how much they got when we sold our fisheries
    It was discussed a few months ago on prime time


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    #40
    nesf
    Registered Users Posts: 27,645 ✭✭✭✭nesf


    Mr.Micro wrote: »
    If that's true then they have no confidence in the Government of this country and ordinarily it would be the IMF in charge now but for our EU membership.

    Not really no. It might be viewed better in the medium run to help out the Irish economy (given it's tiny size) than to leave us to our own devices given our fiscal position.


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