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Speaking at the Irish Association of Pension Funds investment conference in Dublin, fund manager George Cooper pointed out that steep inflation waves were usually linked to steep population growth. He argued that the "very strong" commodities rise seen over the past decade had in fact not been matched by wage increases – leaving many national exchequers with diminishing tax returns.
He added that the new European Union fiscal stability pact – which the Irish electorate was set to ratify or reject in the coming months – was "most ridiculous" and a "European suicide pact". "Part of the solution to the governments' financial problems is that they have been implementing regulation to encourage pension funds to move their assets more and more into long-term nominal bonds to push their interest rates to support their economy", he said.
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