Seanad debates

Thursday, 21 November 2002

Book of Estimates, 2003: Statements.

 

I was interested in what Senator Morrissey said because it reflects in large measure the view of the Minister for Finance, that when one has the money one should spend it and when one does not have the money one should not spend it. This may be very well in the private sector but it is not the way to run an economy. It is, in fact, a procyclical policy and I do not believe in procyclical economics. Clearly the Minister takes him at face value. He clearly believes, for example, that when the economy is doing well, one should stoke it, even though the obvious and inevitable result is that it produces inflation, including the sort of inflation in the construction sector which will inevitably mean less value for money. He clearly believes that in the current circumstances one should take money out of the economy, thereby exacerbating any depression in which we may find ourselves. This is classic procyclical economics which does not make sense.

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