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Is Ireland really the role model for austerity?

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  • Stephen Kinsella

    (Department of Economics, University of Limerick; Geary Institute, Universty College Dublin)

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 1980's, 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, and, finally, ask whether Ireland is, indeed, the role model for fiscal austerity in the Eurozone and beyond.

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Bibliographic Info

Paper provided by Geary Institute, University College Dublin in its series Working Papers with number 201122.

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Length: 20 pages
Date of creation: 19 Sep 2011
Date of revision:
Handle: RePEc:ucd:wpaper:201122

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Keywords: Ireland; Austerity; Fiscal Policy; Monetary Policy;

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