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Is Ireland really the role model for austerity?


  • Stephen Kinsella

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


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.

Suggested Citation

  • Stephen Kinsella, 2011. "Is Ireland really the role model for austerity?," Working Papers 201122, Geary Institute, University College Dublin.
  • Handle: RePEc:ucd:wpaper:201122

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    References listed on IDEAS

    1. Christopher T. Whelan & Bertrand Maitre, 2009. "Welfare Regime and Social Class Variation in Poverty and Economic Vulnerability in Europe: An Analysis of EU-SILC," Papers WP303, Economic and Social Research Institute (ESRI).
    2. Romina Boarini & Marco Mira d'Ercole, 2006. "Measures of Material Deprivation in OECD Countries," OECD Social, Employment and Migration Working Papers 37, OECD Publishing.
    3. Christopher T. Whelan, 2007. "Understanding the Implications of Choice of Deprivation Index for Measuring Consistent Poverty in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 38(2), pages 211-234.
    4. Christopher T. Whelan & Brian Nolan & Bertrand Maître, 2006. "Trends in Economic Vulnerability in the Republic of Ireland," The Economic and Social Review, Economic and Social Studies, vol. 37(1), pages 91-119.
    5. Christopher T. Whelan & Bertrand Maître, 2010. "Protecting the vulnerable: poverty and social exclusion in ireland as the economic crisis emerged," Working Papers 201023, Geary Institute, University College Dublin.
    6. Christopher T. Whelan & Bertrand Maitre, 2008. "“New” and “Old” Social Risks: Life Cycle and Social Class Perspectives on Social Exclusion in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 39(2), pages 131-156.
    7. Kenneth A. Couch & Maureen A. Pirog, 2010. "Poverty measurement in the U.S., Europe, and developing countries," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 217-226.
    8. Nolan, Brian & Whelan, Christopher T., 2011. "Poverty and Deprivation in Europe," OUP Catalogue, Oxford University Press, number 9780199588435.
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    Cited by:

    1. Eoin O’Neill & Michael Brennan & Finbarr Brereton & Harutyun Shahumyan, 2015. "Exploring a spatial statistical approach to quantify flood risk perception using cognitive maps," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 76(3), pages 1573-1601, April.
    2. Hamid Raza & Bjorn Gudmundsson & Stephen Kinsella & Gylfi Zoega, 2015. "Experiencing financialisation in small open economies: An empirical investigation of Ireland and Iceland," Working papers wpaper84, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    3. 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.
    4. Stephen Kinsella, 2014. "Post-bailout Ireland as the Poster Child for Austerity," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 15(2), pages 20-25, April.
    5. David Howden, 2013. "Separating the Wheat from the Chaff: Icelandic and Irish Policy Responses to the Banking Crisis," Economic Affairs, Wiley Blackwell, vol. 33(3), pages 348-360, October.
    6. Alberto Botta, 2014. "Structural asymmetries at the roots of the eurozone crisis: what's new for industrial policy in the EU?," PSL Quarterly Review, Economia civile, vol. 67(269), pages 169-216.
    7. Perugini, Cristiano & Žarković Rakić, Jelena & Vladisavljević, Marko, 2016. "Austerity and gender wage inequality in EU countries," MPRA Paper 76306, University Library of Munich, Germany.
    8. Aidan Regan & Samuel Brazys, 2017. "Celtic phoenix or leprechaun economics? The politics of an FDI led growth model in Europe," Working Papers 201701, Geary Institute, University College Dublin.

    More about this item


    Ireland; Austerity; Fiscal Policy; Monetary Policy;

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

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