Did the EU cental bank help cause the recession ?

thebman

In fairness the government has loads of things they can do to stop borrowing and so does/did the regulator.

It isn't the ECB's fault our national bodies failed us completely even if they weren't helping. We should be capable of managing our own house.

It would appear we'd be better off if we could set interest rates to suit ourselves but would we actually have done anything? I don't think so. Why stop a housing bubble when your economy is almost entirely dependant on it continuing?

Scofflaw

thebman wrote: »

In fairness the government has loads of things they can do to stop borrowing and so does/did the regulator.

It isn't the ECB's fault our national bodies failed us completely even if they weren't helping. We should be capable of managing our own house.

It would appear we'd be better off if we could set interest rates to suit ourselves but would we actually have done anything? I don't think so. Why stop a housing bubble when your economy is almost entirely dependant on it continuing?

There, in essence, is the rub. FF used none of the instruments they did have at their disposal, nor did the Irish banking system. There's no evidence that matters would have been different if they had had more instruments available. Nor is it as if the UK missed out on bad banking practices, or Iceland (despite the latter's much higher interest rates).

cordially,
Scofflaw

K-9

Scofflaw wrote: »

FF used none of the instruments they did have at their disposal, nor did the Irish banking system.

There is evidence that FF and the Irish Central Bank actually used the tools available to worsen problem, or ignore it.

Which suggests that they would have done the same, ECB or not.

After all, Ireland IS different.
It's amazing that after a property crash proving we aren't different, Unions and many Public Service workers are insisting we still are different!