Price Of The Euro

Sir, - The ESRI's proposals to abolish mortgage interest relief and renege on promised tax cuts have dubious merit in the present…

Sir, - The ESRI's proposals to abolish mortgage interest relief and renege on promised tax cuts have dubious merit in the present economic circumstances. These proposals are relatively crude and possibly ineffective alternatives to an appropriate monetary policy. I doubt that even the ESRI would disagree with the proposition that efficient management of the Irish economy requires higher interest rates and a strong currency. Unfortunately these opportunities are now denied to us. Falling back on second-best proposals is the economic price we have to pay for a political decision to participate in the euro. Perhaps it's time to start thinking about the unthinkable. - Yours, etc.,

Prof Rodney Thom, Department of Economics, UCD, Dublin 4.