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Sat 09 Sep 2008Commitment and stamina are required for fiscal consolidation
OPINION:What should the budget try to do? Brian Lenihan should slash public spending on items that don't help the economy and people's welfare; should not increase taxes; and should not try to stimulate either construction or the property market - because that will only make matters worse
A N IMPORTANT feature of the international experience of house price booms and busts is that the public finances always deteriorate significantly in the aftermath of the downturn in house prices. Studies of these episodes find that the budget deficit typically continues to widen for four years after the peak in prices.
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