Fantasy Economics
Figures from the CSO yesterday showed inflation, at 3.9%, is at its highest level for three years. Minister Cowen said he believed this would moderate by the end of the year. He also said he thought yesterday’s rate rise by the ECB was not a major challenge in terms of the growth potential of the economy.
The Minister said that the inflation increase last month was mainly caused by external developments, especially rising oil prices. He said that if the oil factor as well as the mortgage interest rate rises were left out, the country would be looking at an inflation rate of 2.5%.
How does Brian Cowan propose we leave out the oil factor and mortgage interest rates? He’s not suggesting we pull out of the euro and become energy self-sufficient, is he? And isn’t it Irish people who are buying the mortgages and driving the cars?
Less of the spinning Brian. This government is basing its re-election hopes on “prudent economic management”. Sounds like a hollow claim to me.
Mark Waters marked time at 11:33 am on June 11th, 2006 .
