Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

INTERVIEW-UPDATE 1-OECD does not see crisis for Ireland

Published 09/28/2010, 05:18 AM
Updated 09/28/2010, 05:24 AM

* Ireland's situation different from Greece's -OECD economist

* Says problems in Ireland are a known quantity

* Expects global recovery to continue at slower pace (Adds quotes, more remarks)

By Yoo Choonsik

SEOUL, Sept 28 (Reuters) - The economic situation in Ireland is different from the Greek crisis because Irelands problems are known ones and there are new tools available to address them, the OECD's chief economist told Reuters on Tuesday.

"We know what the problems are. We know that in the case of Ireland, the problem was an unsustainable growth model," Pier Carlo Padoan, chief economist at the Organisation for Economic Co-operation and Development (OECD), said in an interview.

"So we know what the solutions are - there's nothing new. It is not nice but we know what it is," he said on the sidelines of a conference in Seoul.

Padoan added that he believed global recovery would continue to move ahead, although at a slower pace "for a number of reasons", including resilient world trade and bright prospects for corporate investment.

"Therefore, the policy stance should remain the way it is, meaning modestly accommodative for monetary policy and moving towards fiscal consolidation," he said.

Central banks from Australia to South Korea recently paused in their campaigns to return to tighter interest rate policies following the global financial crisis, citing greater risk of a cooling global recovery.

"We have only one scenario, which is a slow recovery with risks to the scenario," he said. "We don't see a double dip."

He said resilient exports led by some emerging economies in Asia and Latin America despite slowing recovery in advanced economies did not represent a so-called decoupling, but were a result of their reform efforts over the past several years. (Editing by Chris Lewis)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.