Read on Twitter
I'm starting a thread to respond to some of the nonsense going around re the economy and the economic options available to Ireland
This is a sanity check because dear lord there are a lot of people who are scaremongering without any factual basis.
1/Who knows how many.
This is a sanity check because dear lord there are a lot of people who are scaremongering without any factual basis.
1/Who knows how many.
1. Ireland can't afford to borrow money.
Debt is only an issue if the cost is high or you can't repay the principle. Costs for Ireland are negative for all segments up to 10 years and are half a percent out to 30 years. As for the principal, states refinance all the time.
Debt is only an issue if the cost is high or you can't repay the principle. Costs for Ireland are negative for all segments up to 10 years and are half a percent out to 30 years. As for the principal, states refinance all the time.
2. Ireland won't be able to refinance.
Unknowable but sovereign assets are nearly always in demand. Why? Because they are safe assets with long maturities. i.e they provide investors with a reliable outcome over a long period.
Unknowable but sovereign assets are nearly always in demand. Why? Because they are safe assets with long maturities. i.e they provide investors with a reliable outcome over a long period.
3. But we're being told not to borrow.
By who? The ECB and IMF are actively encouraging states to deficit spend and to borrow. The COVID crisis comes on top of a decade of under investment in the developed world; the solution is to invest for the long term in improving society.
By who? The ECB and IMF are actively encouraging states to deficit spend and to borrow. The COVID crisis comes on top of a decade of under investment in the developed world; the solution is to invest for the long term in improving society.
For an example of 3. https://twitter.com/IMFNews/status/1315016752250728448?s=19
4. States can't spend the money well
A decade of depreciation in public infrastructure has created the opportunities for the state to invest. Housing, healthcare, and infrastructure all need funding. The debate should be what is a good project not are there any good projects.
A decade of depreciation in public infrastructure has created the opportunities for the state to invest. Housing, healthcare, and infrastructure all need funding. The debate should be what is a good project not are there any good projects.
