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More imaginative ways around it must be sought.

Adding the three points from Jake's list and just doing it would be pretty creative. As a sweetener they could preface the actions with a statement that they are fully pledged to maintaining the value of the Euro and the Punt to which it is pledged and would consider exiting the plan if the EU and the ECB began to show signs of sanity.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri May 4th, 2012 at 09:40:55 AM EST
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Such a pledge would be prima facie incredible, for the simple reason that if upholding it were possible, they would not need to issue New Punts.

You should not make obviously incredible threats or promises. It gains you nothing and makes people more likely to call upon you to make good on future threats and promises, which is almost always expensive.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri May 4th, 2012 at 09:44:33 AM EST
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The USA certainly has been impressed with the effectiveness with which the Chinese have maintained the peg of the renmimbi to the dollar.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri May 4th, 2012 at 11:16:44 AM EST
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Different situation. China is maintaining an undervalued peg. Ireland would be maintaining an overvalued peg.

The former is trivial, the latter is impossible.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri May 4th, 2012 at 11:18:19 AM EST
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In that case it might be necessary to devalue the Punt wrt the Euro so that the Punt is slightly undervalued. Even that would seem better than what is currently on offer from the Troika.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri May 4th, 2012 at 12:31:54 PM EST
[ Parent ]

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