Paul Krugman’s Monday Buzzkill

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Damn you Thanks, Krugman.

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9 thoughts on “Paul Krugman’s Monday Buzzkill

  1. b

    now i’m not one to argue with a nobel prize winning economist but Ireland’s economy is 14 times larger than Iceland and there are huge issues with comparing and contrasting an economy like ours with one smaller than Galway & Mayo combined.

    what works for one does not follow to the other – I’d shudder to think for one what would have happened to our economy if we implemented capital controls like Iceland

  2. Kevin

    What was Iceland’s labour force participation rate Vs Ireland’s?

    What were the two differing natural rates of unemployment?

    Ireland was effectively at full employment in 2007, and projections suggest were heading that way this year too.

    I like some of Krugman’s work, but like many economists he spends far too much time trying to prove he’s right.

  3. Qwerty123

    The Irish recovery is definitely urban and/or east coast based phenomena. The above poster is right, we are approaching full employment and we are also in the middle of a property bubble, which is different from last time as it is not credit driven.

    Hard to see how it will play out, needs to be a correction on asset prices, most likely when ECB raise interest rates which looks like never as German inflation is so low.

    1. eoin

      Unemployment rate in Iceland is 2.4%, unemployment rate in Ireland is 5.6%. Does Ireland really have full employment?

      1. Qwerty123

        We are approaching full employment, Full employment is around the 4.5%mark on the unemployment rate. 4% won’t work or can’t work.

  4. dav

    If ever a shower needed some dissing, it’s the irish. Meekly accepting austerity, followed by surrender to the vulture funds and accepting the new property bubble/homelessness as “normal”, we are truly a shower of ****wits

    1. Rob_G

      yes – it would have been much better to rage against the machine like the Greeks did – look at how well everything worked out for them…

  5. Baffled

    That’s a ridiculous comparison. Pumped up with cheap credit, Irish housebuilding peaked at over 90,000 units (3x normal output) in 2006, swelling construction sector employment to unsustainable levels ahead of the inevitable brutal correction once the downturn started. Iceland’s pre-crisis labour market conditions were not comparable. Apples and oranges stuff.

  6. ____

    Putting this down to interest rates is an unbelievable jump to a conclusion.

    The guy just likes bashing the Euro and is clutching at straws to justify it.

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