Ireland's Balance Sheet Recession

I've been banging on about Ireland being in a balance sheet recession for some time. Richard Koo's latest paper in Real World Economic Review (.pdf) has some really interesting charts, including one on Ireland's balance sheet recession, which is here.

4 Replies to “Ireland's Balance Sheet Recession”

  1. Interesting. I would like to see Stephen comment or summarise his comments on this. Is it wise for Govt to make up the speding shortfall while ignoring the payments defecit. In my opinion Ireland needs to drastically reduce the defecit (by cutting welfare, health and public pay/pentions) and then spending on area that will produce a return (jobs and money). Speding without plugging the gaps is not enough - yes ideally cuts should be made in times of growth

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