The Brattle Group’s Michael Cragg and Nobel prize winning economist Dr. Joseph Stiglitz co-authored an opinion piece on the state of Ireland’s economy that was published in the April 9, 2011 issue of The Irish Times.
In their piece, “ECB-IMF deal is a noose that will strangle economic recovery,” Dr. Cragg and Dr. Stiglitz explain that having the International Monetary Fund (IMF) and the European Central Bank (ECB) lend money to Ireland places the burden on the country’s citizens, resulting in higher taxes, fewer job opportunities, and a decrease in public services. The authors conclude that in order to pay back these loans, it will cost Ireland up to ten percent of its gross domestic product.
Debt restructuring, on the other hand, would be less costly for Ireland, draw new banks and companies, and support quicker economic growth. Delaying restructuring will result in continued uncertainly over the economy and hinder both foreign and domestic investment.
To read the opinion article in its entirety, please visit The Irish Times website.
Published in The Irish Times