Fretting over Irish inflation completely misses the point of the Euro? Things could be worse: UK has much lower trend growth, much higher core inflation - stagflation nation.
Mortgage interest relief just another populist policy and of course will only add to inflation. It also won’t be means tested so loads of people that don’t need it will be able to avail of it. Governments want it both ways reduce inflation yet they continue to increase spending and they keep saying they want to put money in peoples pockets. These are mutually exclusive policies.
I understand deflation can be negative but is inflation positive for people. If prices go down this reduces costs for people and they can buy more goods and services at cheaper prices.
Election coming up so it will be spending increases and tax cuts the order of the day. Inflation battle will be well lost by then.
With the €65bn corporate tax surplus this our era of populist politics, do you agree that the introduction of mortgage interest relief to counteract the fixed term mortgage time bomb is probably on the cards for Ireland? That of course would be counter to Chris’ point of letting inflation take its course. But given that the ECB and other central banks are looking to “engineer a recession” this could be a way of dampening that here in Ireland. And it’s less problematic than the likes of the UK government doing it because we’re just a small part of the eurozone economy, whereas the macro view in the UK would just show a tug of war between the Bank of England raising rates and the UK government easing the effect.
The obvious concerns would arise around how do you come off the relief once introduced. Will it become another HAP?
Nothing surer though, there will be attempts to buy some votes with that budget surplus.
Mortgage interest relief just another populist policy and of course will only add to inflation. It also won’t be means tested so loads of people that don’t need it will be able to avail of it. Governments want it both ways reduce inflation yet they continue to increase spending and they keep saying they want to put money in peoples pockets. These are mutually exclusive policies.
I understand deflation can be negative but is inflation positive for people. If prices go down this reduces costs for people and they can buy more goods and services at cheaper prices.
Election coming up so it will be spending increases and tax cuts the order of the day. Inflation battle will be well lost by then.
Interesting discussion as always.
With the €65bn corporate tax surplus this our era of populist politics, do you agree that the introduction of mortgage interest relief to counteract the fixed term mortgage time bomb is probably on the cards for Ireland? That of course would be counter to Chris’ point of letting inflation take its course. But given that the ECB and other central banks are looking to “engineer a recession” this could be a way of dampening that here in Ireland. And it’s less problematic than the likes of the UK government doing it because we’re just a small part of the eurozone economy, whereas the macro view in the UK would just show a tug of war between the Bank of England raising rates and the UK government easing the effect.
The obvious concerns would arise around how do you come off the relief once introduced. Will it become another HAP?
Nothing surer though, there will be attempts to buy some votes with that budget surplus.