Oireachtas Joint and Select Committees
Tuesday, 8 October 2013
Joint Oireachtas Committee on Finance, Public Expenditure and Reform
Macroeconomic Forecasting: Discussion with Department of Finance
7:40 pm
Pearse Doherty (Donegal South West, Sinn Fein)
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I will tease that out a little bit in another direction. Instead of having a set amount less of consolidation, if we had a set amount of additional investment, would there be the same multipliers? Mr. McCarthy spoke of 0.4% or 0.5% as a multiplier. Is the Department not using 0.6% as a multiplier? What would be the figure then? Mr. McCarthy provided hypothetical figures in the last slide, showing 1% growth in world output, inflation and so on, and the effects that would have in terms of GDP. What would a 1% investment in GDP by the State mean? Has the Department considered that?