Abstract
This paper describes the causes and consequences of Ireland's economic crisis in the context of the policy solution implemented to contain that crisis: protracted fiscal austerity. I describe the causes of the recent crisis in Ireland and look at the logic of austerity with a simple model. I compare the current crisis to the crisis of the 1980s, when fiscal austerity was touted as the trigger for the Celtic Tiger. I discuss the measures implemented to date in the current crisis, tracing their effects on sectors of Ireland's macroeconomy. I show that Ireland is not the role model for austerity policies.
Original language | English |
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Pages (from-to) | 223-235 |
Number of pages | 13 |
Journal | Cambridge Journal of Economics |
Volume | 36 |
Issue number | 1 |
DOIs | |
Publication status | Published - 1 Jan 2012 |
Keywords
- Austerity
- Fiscal policy
- Ireland
- Monetary policy