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Their austerity rules are perfectly right, and are necessary for the country to grow and pay back the loan.

But, specifically about Ireland, do you think you will ever pay your loans back? Looking from a distance I got the impression it's almost impossible, but you will certainly know it better.



Austerity can only reduce growth, if you look at how sectoral balances work. You only get growth while the Government is cutting when the private sector (in aggregate) is taking on enough new debt to account both for the cuts and for the growth.

Ireland is damned if they do, damned if they don't though, given that they can't control their own currency, so they actually have a risk of default on their primary currency.




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