Expanding fiscal policy is the right call

There is considerable debate as to what should be the appropriate stance of Irish fiscal policy, now that the imbalances in the public finances have been largely corrected.

The Government debt level remains high but the debt ratios are falling rapidly, with gross government debt declining from 120% to 97% of GDP in the past two years.

Meanwhile, the budget deficit looks set to fall to around 2% of GDP this year and 1% in 2016. It stood at 8% of GDP as recently as 2012. This is some progress.