Very interesting figures indeed

Don\’t know how true they are but fascinating:

The Irish economy contracted by 11.6pc in the 12 months to June. Nominal GDP shrank by nearer 13pc, which is what matters for debt dynamics. It is not for outsiders to judge those such as radio star Eamon Dunphy for switching sides to save \”jobs and livelihoods\”. The country is in deep depression.

….

Iceland\’s economy contracted by 6.5pc to June (less than Germany) and is already turning the corner. Exports are surging. Unemployment fell in August to 7.7pc. Such is the magic of a floating currency. The plunging krone acted as a shock absorber. Icelandic society remains in tact.

Both countries had banking systems that fell over. One said, yup, they\’re bust and had an independent currency which could devalue. The other didn\’t.

It\’s a little early to call the winner here but if in a year or two\’s time Iceland is still growing and Ireland is not then that\’ll answer the euro question, won\’t it?

3 comments on “Very interesting figures indeed

  1. Ambrose believes Ireland’s currency should devalue, and the UK’s, and Germany’s, and Spain’s, and the United States’, and Japan’s and so on. He’s never explained how that can happen without near-hyper inflation, and whether it would really be good for anyone.

  2. Poor old Ireland. The Nationalists told them that they’d been subsidising Britain, but independence revealed that Britain had been subsidising them. Three generations later they got free of enough of their pernicious mindset to get a bit of prosperity, only for the roof to fall in, and now they’ve voted to surrender much of their independence in return, they hope, for more subsidy. God’s not very nice to them, is he?

  3. Iceland’s GDP looks relatively good because its imports have collapsed, down nearly 50%. This is not actually that good for reasons you have set out often.

    I do find this mercantilist strain a bit worrying – devalue, devalue, devalue – it’s not much different from imposing import tariffs (and using those to fund export subsidies).

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