Can Ireland rely on super-low interest rates to manage Covid-19 debt?

Smart Money: The future of interest rates is the biggest economic question in decades

Interest rates at, or below, zero and massive monetary expansion by central banks is helping the Republic and other countries to meet the cost of the pandemic. But how long will this last? Is it back to austerity to pay for the pandemic or on to a future boosted by cheap money?

Introducing an Irish Fiscal Advisory Council conference on the topic this week, chairman Sebastian Barnes said that the central question for budget policy is how to make sense of today’s very high national debt levels and very low interest rates. This may generate, he said “the biggest questions macroeconomics had faced in decades with major implications for fiscal, monetary and financial policies.”

The Irish Times
Please subscribe or sign in to continue reading.
The Irish Times

How can I keep reading?

You’ve reached an article that is only available to Irish Times subscribers.

Subscribe today and get the full picture for just €1 for the first month.

Subscribe No obligation, cancel any time.