Douglas Carswell's Blog

Should Ireland do an Argentina?

Take a wild guess as to when Argentina decoupled herself from monetary union and restored her own currency?  The vertical red line provides a clue.

Just like Ireland, her currency was locked in with another by law.  At first, it gave her low interest rates and a sugar-rush boom. But debt, inevitably, got out of control.

When things started to go wrong, the “experts” said decoupling from the US$ would be economic suicide. Politically insane. Blah blah.

All balls. In January 2002 economic reality prevailed - Argentina decoupled her currency.  She swiftly returned to prosperity.

Ireland should do likewise. They have nothing to lose but their politicians’ foolish pride...

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