Tuesday 19 September 2017

Brian Hayes: Leaving the euro would be car-crash economics

IN recent days, both David McWilliams and Bruce Arnold have been arguing with some force that Ireland should leave the euro and establish its own currency. They are not alone in their opinions. I believe that people who advocate this line of action are in effect supporting car-crash economics. If we crash a car and are lucky enough to survive, we will be taken to hospital, put into intensive care and at some stage we will start to get better. And getting better is good, of course. But would anybody crash a car in order to feel better at some later stage? Not very likely.

Leaving the euro is certainly an interesting idea. But anybody promoting such a policy should honestly acknowledge the likely consequences of such a course of action.

Leaving a currency union and establishing an independent currency is not something that can happen at the flick of a switch. It would take months of planning and preparation. It would be impossible to keep this information secret.

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