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Is Ireland really the role model for austerity?

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  • Stephen Kinsella

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. Copyright The Author 2012. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved., Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/cje/ber032
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Bibliographic Info

Article provided by Oxford University Press in its journal Cambridge Journal of Economics.

Volume (Year): 36 (2012)
Issue (Month): 1 ()
Pages: 223-235

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Handle: RePEc:oup:cambje:v:36:y:2012:i:1:p:223-235

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Cited by:
  1. Stephen Kinsella, 2014. "Post-bailout Ireland as the Poster Child for Austerity," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 15(2), pages 20-25, 04.
  2. Constantinos Alexiou & Joseph G. Nellis, 2013. "Challenging the Raison d’etre of Internal Devaluation in the Context of the Greek Economy," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 60(6), pages 813-836, December.

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