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The Irish Fiscal Crisis

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  • Adele Bergin
  • John Fitz Gerald

    ()

  • Ide Kearney
  • Cormac O'Sullivan

    (ESRI, Dublin)

Abstract

This paper considers the origins and characteristics of the current economic crisis in Ireland. In particular, it examines how fiscal policy contributed to the crisis rather than preventing it. The paper gives details of the major fiscal tightening that is under way. By 2014 the authorities will have implemented a package of ex ante cuts equivalent to one-fifth of GDP. The costs of this package, together with the more permanent effects of the recession on potential output, are discussed and the legacy effects of the crisis for government indebtedness are analysed.

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Bibliographic Info

Article provided by National Institute of Economic and Social Research in its journal National Institute Economic Review.

Volume (Year): 217 (2011)
Issue (Month): 1 (July)
Pages: R47-R59

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Handle: RePEc:sae:niesru:v:217:y:2011:i:1:p:r47-r59

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Related research

Keywords: Fiscal policy; debt sustainability; Ireland;

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Cited by:
  1. Durkan, Joe & Duffy, David & O'Sullivan, Cormac, 2011. "Quarterly Economic Commentary, Autumn 2011," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC20113.
  2. Fitz Gerald, John & Kearney, Ide, 2011. "Irish Government Debt and Implied Debt Dynamics: 2011-2015," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), issue 3-Autumn.
  3. Schwarzmüller, Tim & Gern, Klaus-Jürgen & Jannsen, Nils & Van Roye, Björn & Scheide, Joachim & Boysen-Hogrefe, Jens & Groll, Dominik, 2011. "Weltkonjunktur im Herbst 2011," Kiel Discussion Papers 494/495, Kiel Institute for the World Economy (IfW).

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