Austerity could be 'self-defeating' for Ireland

A former IMF official has said Ireland needs to move away from austerity measures if the country's economy is to grow.

Ashoka Mody, who was one of the architects of Ireland's IMF bailout, told broadcaster RTE that there was "not one historical incidence" where austerity policies have led a country to get out from under a heavy debt burden.

“We have to ask ourselves why Ireland is not growing . . . It’s hard for me to believe that austerity is not contributing to this,” he said.