No, no, no. Ireland is, alas, not an austerity role model | Real World Economics Review

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No, no, no. Ireland is, alas, not an austerity role model | Real World Economics Review

Larry Elliot is wrong in his chirpy assessment of the Irish economy today, lazily suggesting that Ireland has become a poster child for implementing austerity programs. There is no doubt that the Irish government’s appetite for it is undiminished. He suggests though that Irish politicians are reluctant to stop for fear of reprisals from the EU. It’s wrong of course. Elliot relies on strong exports = strong economy, although caveats it, but even so this incorrect. Merijn Knibbe, quoted below, argues that Ireland does not show strong export performance. Curiously enough Elliot is following Jurgen Stark, who clearly has a particular interest in giving the Ireland as poster child for success through austerity line. What’s Elliot’s excuse?

To the contrary. Ireland’s export performance is dismal, even compared with the other countries which are going down the path of internal deflation (graph). It’s far from a role model.

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Donagh is the editor of Irish Left Review. Contact Donagh through email: dublinopinionAtgmail.com