Rising Inflation - Time to Bring Back Ruairi Quinn

[woodie]

Ireland's annual rate of inflation, at 3.8%, is now approaching twice the European average, of 2.1%, while George Lee said on RTE news last night that should present trends continue, the country was looking at an overall inflation rate for 2006 of 9%!

FF and the PDs will say that this is due to factors outside their control yet other European countries face the same external pressures and are managing.

How is it that FF and PDs are just so incompetent when it comes to managing the economy? When Ruairi Quinn finished his tenure as Minister for Finance in 1997, inflation was just 1%. It's been consistently above that figure ever since.

Looks as if its time to bring him back!

[DSCH]

Inflation will usually be greater in boom economies than in stagnant ones. The "stagflation" of the 70s / early 80s was the exception that proved the rule - in economics there is always an exception!

Inflation in Ireland is driven by the service sector, as supply cannot keep pace with demand. We need a return to the days of economic stagnation! So we don't need a returrn to the days of Ruairi Quinn, but rather to the days of that other social democratic scion of D4 privilege, Garret Fitzgerald!

[Ponzi]

Ireland is slowly bleeding away its competitive advantage. Fianna Fail are just about the worst collection of individuals imaginable to do anything about it.

[DSCH]

Ireland is slowly bleeding away its competitive advantage.

That's the whole point of economic development, it brings you to the level where you start to experience the problems of rich world economies!

[eurocrat]

How is it that FF and PDs are just so incompetent when it comes to managing the economy?

You really have no idea how strong the Irish ecomony is. Our problem is a bit of inlfation. Germany has massive unemployment, Italy stagnatant growth, ageing populations etc.

In boom periods Inflation has to be expected. It is not the goverments job to control pricing.

[krayZpaving]

So we don't need a returrn to the days of Ruairi Quinn, but rather to the days of that other social democratic scion of D4 privilege, Garret Fitzgerald!

Garrett as Taoiseach, Quinn as Finance Minister & Tánaiste?

[DSCH]

So we don't need a returrn to the days of Ruairi Quinn, but rather to the days of that other social democratic scion of D4 privilege, Garret Fitzgerald!

Garrett as Taoiseach, Quinn as Finance Minister & Tánaiste?

D4 should be only be fed to the masses in small doses!

[woodie]

With respect eurocrat, I think we're facing more than just a problem with a 'bit of inflation'. Ireland's inflation is now well above the European average and the possibility of 9%, hasn't been experienced for over 20 years and would cause huge upheavel.

I'm not pretending that some other European countries don't have their own economic problems, they clearly do (though I'm not sure what any country can do about 'ageing populations').

Keeping inflation down is tricky. My point is that Cowen (and McCreevy before him) just don't seem to be able to do it whereas Quinn did and handed over an economy that was in very good shape.

Will the same be said after the next election?

[eurocrat]

Keeping inflation down is tricky. My point is that Cowen (and McCreevy before him) just don't seem to be able to do it whereas Quinn did and handed over an economy that was in very good shape.

Don't foret that when Quinn was minister we still had the pound so monetarty policy was easier to control.

So what do you suggest Brain Cowen actually do? What speifcally did Quinn do that kept inflation so wonderfully low?

I don't know where Georgre Lee is getting his 9% figure from. Can I see a link for this? Is he suggesting we could have 9% year on year inflation acorss the whiole economy or is he just talking about secotral inflation (e.g. Services)?

[hiker]

Ireland's annual rate of inflation, at 3.8%, is now approaching twice the European average, of 2.1%

I'm no economist, but is'nt Irelands growth rate wiping the floor with the EU average.

You can please some of the people some of the time.........