Z
I think our interest rate was around 7% before the euro. I'd say we'd be looking at 10%+ if we were outside the eurozone.
Even is talking about the possibility of leaving the Euro. Can't understand how we can even comtemplate it TBH. What happens to all debt/mortgages, do they get converted back to the punt (or what ever we create)?
Probably not. With the major currencies of the world dropping their rates following the dotcom bust, Ireland would have followed the same course (or had a stinking recession caused by an over-valued punt).it's a bit of a useless question as if Ireland was setting its own rate the whole time, it would have been higher all along, and so the property market would not have inflated so much probably!
all hypotheticaal of course
Probably not. With the major currencies of the world dropping their rates following the dotcom bust, Ireland would have followed the same course (or had a stinking recession caused by an over-valued punt).
I think it is true to say, however, that rates would be much higher now, just look at Iceland:
[broken link removed]
15.5%
(I think it is a fair comparison - island nation on the edge of Europe, small population, currency not converging with the euro, i.e. not in an exchange rate mechanism like the accession states).
What's the story with putting a few quid on deposit in Iceland?
What's the story with putting a few quid on deposit in Iceland?
Even is talking about the possibility of leaving the Euro. Can't understand how we can even comtemplate it TBH. What happens to all debt/mortgages, do they get converted back to the punt (or what ever we create)?
Probably not. With the major currencies of the world dropping their rates following the dotcom bust, Ireland would have followed the same course (or had a stinking recession caused by an over-valued punt).
I think it is true to say, however, that rates would be much higher now, just look at Iceland:
[broken link removed]
15.5%
(I think it is a fair comparison - island nation on the edge of Europe, small population, currency not converging with the euro, i.e. not in an exchange rate mechanism like the accession states).
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