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Ireland to pull out of the euro?

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    #62
    Spiritoftheseventies
    Closed Accounts Posts: 12,082 ✭✭✭✭Spiritoftheseventies


    maxwell smart wrote: »
    I heard a rumour today, from a source that would have a bit of insider info, that by the end of 2010 Ireland will pull out of the Euro.....

    Thoughts?
    yes we will be screwed on the conversion again.


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    #63
    Mike 1972
    Closed Accounts Posts: 8,018 ✭✭✭Mike 1972


    Dob74 wrote: »
    A weaker currency would be good for exports.

    Assuming that exporters source can most of their raw materials (including energy/fuel) locally


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    #64
    SLUSK
    Closed Accounts Posts: 1,156 ✭✭✭SLUSK


    Mike 1972 wrote: »
    Assuming that exporters source can most of their raw materials (including energy/fuel) locally
    Who dares to invest in a country who on a continued basis keeps on devaluating the currency?


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    #65
    97i9y3941
    Closed Accounts Posts: 1,616 ✭✭✭97i9y3941


    i been reading talks of that too on bbc website,talks even that greece could drop it since its so strong,least in the uk they had a chance to devalue their currency to encourage business again,something we cant do here,but then looking at our costs anyway we are the least cost effiecent country anyway..


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    #66
    Flamed Diving
    Closed Accounts Posts: 6,609 ✭✭✭Flamed Diving


    Fred83 wrote: »
    i been reading talks of that too on bbc website,talks even that greece could drop it since its so strong,least in the uk they had a chance to devalue their currency to encourage business again,something we cant do here,but then looking at our costs anyway we are the least cost effiecent country anyway..

    Please explain, in detail, how Ireland devaluing An Punt Nua would provide a net benefit.


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    #67
    ei.sdraob
    Closed Accounts Posts: 9,376 ✭✭✭ei.sdraob


    Flamed Diving wrote: »
    Please explain, in detail, how Ireland devaluing An Punt Nua would provide a net benefit.

    yes devaluing helped the UK alot :rolleyes:

    they are still in a recession and still printing money to pay for government debt


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    #68
    Spiritoftheseventies
    Closed Accounts Posts: 12,082 ✭✭✭✭Spiritoftheseventies


    what will be on the new punt. historical figure or the old deer again


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    #69
    ei.sdraob
    Closed Accounts Posts: 9,376 ✭✭✭ei.sdraob


    bayviewclose wrote: »
    what will be on the new punt. historical figure or the old deer again

    Bertie Ahern :p matches the above 2 criteria


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    #70
    OldJay
    Closed Accounts Posts: 943 ✭✭✭OldJay


    maxwell smart wrote: »
    I heard a rumour today, from a source that would have a bit of insider info, that by the end of 2010 Ireland will pull out of the Euro.....

    I heard that we going to switch to driving on the right-hand side of the road because road users still cannot seem to get to grips with driving on the left-hand side.
    Nothing like a good old baseless rumour to get the ball rolling . . .


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    #71
    PLIIM
    Closed Accounts Posts: 102 ✭✭PLIIM


    Justind wrote: »
    I heard that we going to switch to driving on the right-hand side of the road because road users still cannot seem to get to grips with driving on the left-hand side.
    Nothing like a good old baseless rumour to get the ball rolling . . .

    That will happen before we leave the euro or the IMF come in. :D
    What is it with us Irish that we want to believe impossible (bad) things will happen.


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    #72
    OldJay
    Closed Accounts Posts: 943 ✭✭✭OldJay


    PLIIM wrote: »
    What is it with us Irish that we want to believe impossible (bad) things will happen.
    Begrudgers who love to pass the buck and spend rest of time blaming


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    #73
    View
    Registered Users Posts: 3,872 ✭✭✭View


    Justind wrote: »
    I heard that we going to switch to driving on the right-hand side of the road because road users still cannot seem to get to grips with driving on the left-hand side.

    Switching sides is possible - Sweden managed it at the end of the 1960's. Moreover, one TD (or Senator?) did actually propose this a while back (to little support), whereas, breaching the EU Treaties by deciding to leave the Euro isn't on the agenda of any politican or party that I have heard.


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    #74
    Spiritoftheseventies
    Closed Accounts Posts: 12,082 ✭✭✭✭Spiritoftheseventies


    Problem is that when one country sticks with its own currency like Britain did with Sterling another country invariably suffers on the conversion rates. Surely one currency for everyone is the only way to avoid that. That way we are all playing on a level pitch


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    #75
    OldJay
    Closed Accounts Posts: 943 ✭✭✭OldJay


    View wrote: »
    Switching sides is possible - Sweden managed it at the end of the 1960's

    I don't think you got my point.


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    #76
    Boston
    Closed Accounts Posts: 17,163 ✭✭✭✭Boston


    bayviewclose wrote: »
    Problem is that when one country sticks with its own currency like Britain did with Sterling another country invariably suffers on the conversion rates. Surely one currency for everyone is the only way to avoid that. That way we are all playing on a level pitch

    No, because countries don't trade equally.


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    #77
    Spiritoftheseventies
    Closed Accounts Posts: 12,082 ✭✭✭✭Spiritoftheseventies


    Guess its all about people wanting to make a quick buck on currency valuations. Makes for a very volatile market.


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    #78
    Flamed Diving
    Closed Accounts Posts: 6,609 ✭✭✭Flamed Diving


    bayviewclose wrote: »
    Problem is that when one country sticks with its own currency like Britain did with Sterling another country invariably suffers on the conversion rates. Surely one currency for everyone is the only way to avoid that. That way we are all playing on a level pitch

    You mean World Currency? The problem with that is what we have experienced in Ireland since the EMU has been the loss of control over monetary policy. If the ECB decides to lower rates and increase the money supply to counteract a recession in Germany/France (because this threatens the Eurozone GDP average), this is likely to cause overheating in economies which are currently going through booms. The reverse is also true. Of course, having a level playing field in exchange rates is good for business, within these currency clubs. So then people argue for fixed exchange rates, using currency boards (what Ireland had before the Central Bank) to achieve this. If a country is going through a recession, it merely devalues their currency relative to the currency it is pegged to, and all will be fixed, right? Well, no. This leaves the country open to currency speculators (Soros) and worse still, if the currency boards simply get the devaluation wrong, or fail to follow the parent currency closely enough, this could lead to capital flight, or too strong a Punt. So, we are left with three choices:

    1) We can have discretionary monetary policy, to fight inflation, curb recessions, etc. But accept the risks of a floating exchange rate, outlined countless times on this forum.

    2) We can have stable exchange rates which are good for business, and the protection of a strong currency, but no discretionary power.

    3) We can have stable exchange rates which are good for business, but no protection from speculators, fallible currency board directors. But more control over currency.


    Many people on this forum seem to think we can have it all three (or two) ways.

    We cannot.


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    #79
    Aussie Sean
    Registered Users Posts: 127 ✭✭Aussie Sean


    View wrote: »
    Someone better tell the guys at the Mint - it takes a fair amount of time to run off enough coins and bank notes for a state, not to mention plan the removal of the old notes/introduce the new ones etc. etc.

    QUOTE]

    What if they stockpiled all the old Punt notes and coins when we changed over?

    Sean


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