Basic economic rules ignored
Published 24/06/2010 | 05:00
I WELCOME a review of the Department of Finance. I would like three topics covered in detail. Firstly, why the 'Kenny Report' was not implemented.
This would have controlled the price of land and prevented the bubble.
Secondly, in a boom a government should increase taxes and reduce expenditure. This reduces demand and builds up a cash reserve for the burst. In a recession it can use the cash reserves to prime the economy without increasing borrowing.