David McWilliams: Ireland must escape the clutches of old economic ideas

State's challenge is project management, not fiscal constraint. Bank largesse is way ahead

Ireland is borrowing at a rate of 0.19 per cent for 10 years, constituting an enormous opportunity to finance the country. Photograph: Gareth Chaney/Collins

Ireland is borrowing at a rate of 0.19 per cent for 10 years, constituting an enormous opportunity to finance the country. Photograph: Gareth Chaney/Collins

The difficulty lies not so much in developing new ideas as in escaping from old ones.
John Maynard Keynes

This week, the Irish Fiscal Advisory Council has shown it is wedded to old ideas by trying to bully the State into cutting spending and raising taxes. Meanwhile, the world is moving into an era of greater government spending, backed to the hilt by new central bank financing, in order to fix infrastructure.

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