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The U.S. and Irish Credit Crises: Their Distinctive Differences and Common Features

  • Gregory Connor

    ()

    (Economics,Finance and Accounting, National University of Ireland, Maynooth)

  • Thomas Flavin

    ()

    (Economics,Finance and Accounting, National University of Ireland,Maynooth)

  • Brian O’Kelly

    ()

    (Dublin City University)

Abstract: Although the US credit crisis precipitated it, the Irish credit crisis is an identifiably separate one, which might have occurred in the absence of the U.S. crash. The distinctive differences between them are notable. Almost all the apparent causal factors of the U.S. crisis are missing in the Irish case; and the same applies vice-versa. At a deeper level, we identify four common features of the two credit crises: capital bonanzas, irrational exuberance, regulatory imprudence, and moral hazard. The particular manifestations of these four “deep” common features are quite different in the two cases.

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Paper provided by Department of Economics, Finance and Accounting, National University of Ireland - Maynooth in its series Economics, Finance and Accounting Department Working Paper Series with number n206-10.pdf.

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Length: 25 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:may:mayecw:n206-10.pdf
Contact details of provider: Postal: Maynooth, Co. Kildare
Phone: 353-1-7083728
Fax: 353-1-7083934
Web page: http://www.maynoothuniversity.ie/economics-finance-and-accounting

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