21st November 2016

M&G Investments: The Irish economy: a Bond Vigilantes quick video update

Last weekend we were at the brilliant Kilkenomics festival in Kilkenny, Ireland.  Whilst we were there (and it’s a fantastic town) we filmed this short video.  In the wake of the Trump election victory there’s a mini-panic going on in Ireland, not least because, in common with Mexico, there are many undocumented Irish in the US whose future has become uncertain.  There’s also the huge issue of Foreign Direct Investment (FDI) and so-called “tax inversion”.  The influx of US companies to Ireland to take advantage of its 12.5% corporate tax rate has (artificially?) massively boosted GDP, and therefore also reduced its debt/GDP ratio dramatically.  Do these companies head back to the States on the back of a Trump tax cutting agenda?  In our film we also discuss the housing market, and the impact of Brexit.

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