So inflation in the Eurozone is picking up. This probably means France and Germany's economies are doing nicely. This also usually means higher interest rates on the way. And as we all know they've started already. Now the last thing the ailing Irish economy needs is higher interest rates. How come the remedy for high inflation adds to the same inflation? Mortgage costs are factored into the 'basket of goods' that is used to calculate inflation and home loans are always increased by higher money lending rates. And the currency usually increases in value, so exports can be hit.
But back to the Irish economy. Back at the turn of the 90's and 'Noughties' the last thing a roaring Celtic tiger needed was low interest rates which were essentially applied to kick the German economy in the pants,but that's what we got. The government could have instead used higher taxes to temper a red hot economy but no; votes had to be bought. Look where it all ended. Now we're getting high rates along with higher taxes. We haven't two pennies to rub together and the economy is in a rotten state. Where will this all end? European economic integration how are you!
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