With excessive media hype surrounding economic ‘recovery roads’ and ardent stimulus panacea, quick fix answers need to be replaced with a reality of hard choices and sufferance. Public veracity of past decisions coupled with delusions of continuous economic growth require realignment with emphasise placed on our global economies constant ebb and flow.
Whilst not doubting the extent, unprecedented qualities and inexplicable face of our current global recession I believe it is worth noting that such dysfunctional tendencies must be placed upon a continuum, with resounding Celtic tiger buzz words such as hundred percent mortgages resembling an equal yet opposite form of dysfunctional economics.
Economic flux and variability deserve a greater degree of ‘natural’ focus, departing from the pessimistic rhetoric and accentuating the prevalence of the business cycle. The Austrian school of business cycle theory, rarely considered by mainstream economists, could offer a refreshing analysis of our current plight. While empirical research has dismissed the idea, Hayek’s concept of the inevitability of a recession following excessive credit expansion and maturing bubbles could be worth further investigation in our current climes. Offering not only an explanation to the current crisis but an insight into devising future policy so as to avoid Ireland’s possible boom bust cycle forwarded by Krugman.
Celtic tiger overinvestment and the necessity of natural economic restoration remain vital. Whilst seeing ourselves through a necessary economic storm reform on a national and European level appear sacrosanct; stricter banking regulation and green agendas remain prominent sectors that require improvement, placing Ireland in a foremost, agile position when global recovery begins. Given the two hundred years since his birth and the natural need for readjustment it would be apt that Charles Darwin’s wisdom could offer a ‘road to recovery; “in the long history of humankind those who learned to collaborate and improvise most effectively have prevailed”
Whilst not doubting the extent, unprecedented qualities and inexplicable face of our current global recession I believe it is worth noting that such dysfunctional tendencies must be placed upon a continuum, with resounding Celtic tiger buzz words such as hundred percent mortgages resembling an equal yet opposite form of dysfunctional economics.
Economic flux and variability deserve a greater degree of ‘natural’ focus, departing from the pessimistic rhetoric and accentuating the prevalence of the business cycle. The Austrian school of business cycle theory, rarely considered by mainstream economists, could offer a refreshing analysis of our current plight. While empirical research has dismissed the idea, Hayek’s concept of the inevitability of a recession following excessive credit expansion and maturing bubbles could be worth further investigation in our current climes. Offering not only an explanation to the current crisis but an insight into devising future policy so as to avoid Ireland’s possible boom bust cycle forwarded by Krugman.
Celtic tiger overinvestment and the necessity of natural economic restoration remain vital. Whilst seeing ourselves through a necessary economic storm reform on a national and European level appear sacrosanct; stricter banking regulation and green agendas remain prominent sectors that require improvement, placing Ireland in a foremost, agile position when global recovery begins. Given the two hundred years since his birth and the natural need for readjustment it would be apt that Charles Darwin’s wisdom could offer a ‘road to recovery; “in the long history of humankind those who learned to collaborate and improvise most effectively have prevailed”
