Parallel currency would get things moving again

IF a raft of economists are to be believed, it is imperative to cut the public sector wage bill. Such action would be met by strong resistance.

An alternative might be to defer payment of a certain percentage of salaries for some time, with the promise to pay when the public finances improve sufficiently. The deferred salaries would be an interest-free loan to the Government. The promises to pay could be given material form by issuing certificates similar to banknotes which would have some potential, in effect, to become a national currency parallel to the euro that would be accepted by business as payment for goods and services. Banks could be obliged to accept them and keep them in circulation.

In other words, it would be like printing money. That would help to deal with a related issue — the straitjacket that membership of the eurozone imposes on Irish economic policy.