No holiday from austerity

High debt need not impede growth, but a European recovery has to take hold before Ireland can relax its correction of the government deficit, writes John Fitzgerald.

27th April, 2013
An anti-austerity protest of red cards is staged outside City Hall in central Dublin earlier this month. Photo: Photocall Ireland

Unbelievers can cheer when a prophet is dethroned, but the faithful may not even notice. In a recent paper, two prominent economists, Reinhart and Rogoff, claimed that high debt inevitably has a serious effect on growth.

The fact that subsequent analysis has shown that the evidence for this "finding" was unsatisfactory is a serious embarrassment to the authors. They are both well respected economists with a large body of valuable work to their credit.

However,...

Subscribe from just €1 for the first month!

Currency

What's Included

With any subscription you will have access to

  • 971569B3-2C5E-4C45-B798-CEADE16987A8

    Unlimited multi-device access to our iPad, iPhone and Android Apps

  • 099C8662-C57C-42F2-9426-F2F90DF17C8F

    Unlimited access to our eReader library

  • 198AE43B-B9CF-4892-8769-D63C2104BA08

    Exclusive daily insight and opinion seven days a week

  • D8F37B78-25E4-4E4A-A376-4F5789B1564A

    Create alerts to never miss a subject that matters to you

  • B15F2521-37CD-4E02-B898-730A20D39F7F

    Get access to exclusive offers for subscribers on gifts and experiences

  • A564FE02-1AB8-4579-AF9D-BA32A2E5ACA7

    Get content from Business Post, Business Post Magazines, Connected, Tatler and Food & Wine

Share this post

Related Stories

The year in review

Newsround: What Thursday’s papers say