Monday, April 20, 2009

Paul Krugman on Ireland's Economy

Paul Krugman, in today's Times (here), says that Ireland is in particularly dire economic straits (similar to Iceland's situation last winter). GDP may decrease by 10% this year, and their government bonds have been downgraded as lenders are uncertain of the country's ability to repay. Krugman blames easy credit for the problems, analogizing Ireland to Florida (was it Krugman or someone else who, a few months ago, said that Spain was Europe's Florida)? The Irish public is having a debate, similar to ours, as to whether the government should nationalize its banks.

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