Upcoming Events

National | Housing

no events match your query!

User Preferences

  • Language - en | ga
  • text size >>
  • make this your indymedia front page make this your indymedia front page

Blog Feeds

Spirit of Contradiction

offsite link Review: Do Religions Evolve? Mon Aug 14, 2017 19:54 | Dara McHugh

offsite link Fake News: The Epistemology of Media Wed Jun 07, 2017 11:52 | Gavin Mendel-Gleason

offsite link Officials and Provisionals Sat Apr 01, 2017 22:54 | James O'Brien

offsite link Interview with Cathal Goulding Mon Dec 26, 2016 17:11 | Cathal Goulding

offsite link Trump, Russia and the CIA Sat Dec 10, 2016 18:23 | Gavin Mendel-Gleason

Spirit of Contradiction >>

Public Inquiry
Interested in maladministration. Estd. 2005

offsite link Daniel McConnell: Happy to wear establishment blinkers

offsite link State failing in its duty to enforce law Anthony

offsite link Elaine Byrne/Fergus Finlay: Afraid to condemn their own? Anthony

offsite link Jobstown trial exposes mainstream bias Anthony

offsite link RTE: Blatant censorship and manipulation of news Anthony

Public Inquiry >>

The Saker
A bird's eye view of the vineyard

offsite link Moveable Feast Cafe 2017/08/23 ? Open Thread Wed Aug 23, 2017 09:30 | Herb Swanson
2017/08/23 08:30:01Welcome to the ‘Moveable Feast Cafe’. The ‘Moveable Feast’ is an open thread where readers can post wide ranging observations, articles, rants, off topic and have animate discussions of

offsite link Social Media as a Tool of Hybrid Warfare; The Case of Syria Wed Aug 23, 2017 04:11 | The Saker
By Intibah Kadi August has been a month for exposing how the ?Empire? works at the social media level, inside the activist communities and, in this case, through the social

offsite link ISIS ? Always-Always Claims Responsibility Tue Aug 22, 2017 20:16 | The Saker
by Peter Koenig Whenever a terrorist attack hits somewhere in Europe or the world, wait a few hours and the police or media report ISIS / ISIL / Daesh claims

offsite link Syrian War Report ? August 22, 2017: ISIS Defense Rapidly Collapses In Central Syria Tue Aug 22, 2017 19:13 | Scott
https://southfront.org/syrian-war-rep... If you?re able, and if you like our content and approach, please support the project. Our work wouldn?t be possible without your help: PayPal: southfront@list.ru or via: http://southfront.org/donate/ or via: https://www.patreon.com/southfront Voiceover by Harold

offsite link Listening to the Donald, one very last time? Tue Aug 22, 2017 16:40 | The Saker
I just listened to Trump’s speech on Afghanistan: American heroes are unique and better than all others… 9/11 was planned in Afghanistan… together with the Saudis will will fight terrorism…

The Saker >>

Human Rights in Ireland
www.humanrights.ie

offsite link Ireland?s violation of International Abortion rights: A perpetual Déjà vu. Sat Jul 29, 2017 18:49 | admin

offsite link Call for Papers: Irish Yearbook of International Law Thu Jul 20, 2017 10:54 | Fiona de Londras

offsite link Understanding the Increases in Direct Provision Allowance for Asylum Seekers Mon Jul 17, 2017 11:31 | Liam Thornton

offsite link Ireland?s Failing Abortion Law: Statutory Interpretation, Human Rights and the Detention of Pregnant... Tue Jun 13, 2017 17:08 | admin

offsite link RIA Conference on Human Rights and the Social Sciences, June 22nd. Thu Jun 01, 2017 16:59 | admin

Human Rights in Ireland >>

People's News: Another housing bubble building!

category national | housing | press release author Monday February 27, 2017 22:18author by 1 of Indyy Report this post to the editors

News Digest of the People’s Movement - No. 162 15 February 2017

The latest issue of People's News -for 15th Feb carries a lead article on the current housing bubble.

The free movement of capital has become one of the maxims of global capitalism. Along with the free movement of people, goods and services it is also one of the “four freedoms” of the EU’s single market.

But the removal of the policy instrument of capital controls has probably contributed to a succession of financial crises. Three decades ago, many people in the EU invested their hopes in a combination of free trade, free mobility of capital, a fixed exchange rate, and an independent monetary policy — dubbed an “inconsistent quartet.”

residential_property_prices_pn_162.jpg

The combination is logically impossible. If Ireland, say, fixed its exchange rate to the German mark — which in effect it has done by adopting the euro — and if capital and goods move freely across borders, the Central Bank would have to follow the policies of the German central bank, the Bundesbank — or, in effect, the EU Central Bank in Frankfurt.

So we sacrificed monetary independence when we adopted the common currency. What has changed since then is the increasing importance of cross-border finance. Many emerging markets do not have a sufficiently strong financial infrastructure of their own. Companies and individuals therefore take out loans from foreign institutions denominated in euros; and that’s what the Irish banks were doing a decade ago.

Theoretically, it is the job of the Central Bank to bring the ensuing havoc to an end, which standard economic theory suggests it should be able to do so long as it follows a domestic inflation target. But if large parts of the economy are funded by foreign money, its room for manoeuvre is limited.

In the good times, credit flows into peripheral markets, fuelled by the massive German surplus, where it fuels local asset price bubbles, as we have experienced to our detriment. When, years later, liquidity dries up and the hot money returns to safe havens in Europe, the country is left in a mess.

Unless you accept financial instability as inevitable — and it increasingly seems an intrinsic part of the system as the time between crises grows shorter — you may soon be thinking about imposing capital controls that involve telling foreign investors that you don’t want their cash. The point is to prevent hot money flowing in during the good times and to stop it from draining out in the bad times.

This is not yet a subject of polite conversation among policy-makers. Central bankers have instead been peddling a concept known as macro-prudential regulation, a version of capital controls. The idea is to tweak incentives: when a housing bubble seems to be building up, the Central Bank imposes some ceiling on lending, for example by capping loan- to-value ratios. It might also ask its government to raise stamp duties or other transaction taxes.

Spain tried such measures during the precrisis years, and Ireland is trying it now. But it did not stop the buildup of one of the biggest housing bubbles in history.

More drastic action, such as leaving the euro or imposing controls on capital, might prevent the next calamity as rents and house prices soar. Spain did neither, but before long someone will — and it looks increasingly like it should be Ireland. Free movement of capital cannot be sustained as a point of principle when the economic costs are so devastating.

************************************************************
Some of the other articles in this issue are:

Two-speed EU back on the agenda!
Is there a trade war on the way?
Could the EU provide a solution to Ireland’s housing crisis?
EU banks have more than €1,000 billion in bad debt!
More euros to lend at low interest rates ?
Trade secrets
The security industry is shaping EU legislation: lobbyists in action!
More austerity for the Greeks
What to do in Europe? Proposals from the left

Related Link: http://www.people.ie/news/PN-162.pdf
© 2001-2017 Independent Media Centre Ireland. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by Independent Media Centre Ireland. Disclaimer | Privacy