Ireland is ECB's sacrifical lamb to satisfy German inflation demands
Telegraph
14 Aprile 2009
Put bluntly, Ireland is being forced to roll back the welfare state and tighten fiscal policy in the midst of a savage economic contraction in order to uphold the deflation orthodoxies of Europe's monetary union.
If Ireland still controlled the levers of economic policy, it would have slashed interest rates to near zero to prevent a property collapse from destroying the banking system.
The Irish central bank would be a founder member of the "money printing" club, leading the way towards quantitative easing a l'outrance.
Irish bond yields would not be soaring into the stratosphere. The central bank would be crushing the yields with a sledge-hammer, just as the Fed and the Bank of England are crushing yields on US Treasuries and gilts.
Dublin would be smiling quietly as the Irish exchange rate …
(L’articolo è disponibile previo sostegno)