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Warren Mosler – Fixing Ireland

Short and to the point:

So I’ve been asked what I’d do to get Ireland past this latest funding crisis.

Answer: I’d announce that in the case of default new Irish govt debt is freely transferable and can be used for the payment of taxes to the Irish govt.

This should facilitate funding for the near term.

This is, not coincidentally, exactly what Smart Taxes have advocated in our Budget submission as Option 2 for the State to get out of its mess. Option 1 remains an ECB disbursement to all Euro-zone economies.

Posted in Money Systems.

3 Responses

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  1. warren mosler says

    Great minds think alike!

    Keep up the good work.

  2. Rodger Malcolm Mitchell says

    “The purpose of the Smart Taxes project is to develop policy options to reform fiscal and other financial and monetary mechanisms in Ireland to deliver environmental, social and economic sustainability. “

    There is only one long-term solution for Ireland. Become monetarily sovereign like other members of the EU, i.e. the U.K., Denmark and Norway.

  3. Neil Wilson says

    Yeah. I mentioned this the last time Ireland wobbled. Turn ‘debt’ into ‘money’. Run a parallel currency.

    The other option is to request another Act of Union with the UK. We’re generally quite generous with transfer payments to the provinces. Although I suspect, given history, Ireland would rather join Federal Germany first.