When Banks Cannibalise a State: Analysing Ireland’s Financial Crisis

Kirby, Peadar (2011) When Banks Cannibalise a State: Analysing Ireland’s Financial Crisis. Elcano Newsletter (73). 10 p.. ISSN 1698-5184

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Abstract

Ireland’s banking crisis was described by the IMF in early 2009 as matching ‘episodes of the most severe economic distress in post-World War II history’, yet measures taken since 2008 to overcome it have only served to worsen the crisis. Hailed for over a decade as the ‘Celtic Tiger’, Ireland’s economy collapsed in 2008 as falling property prices exposed huge liabilities in its banking system resulting from reckless lending to builders and developers. This paper describes the trajectory of Ireland’s worsening banking crisis from 2008 up to the acceptance of an EU/ECB/IMF rescue package in November 2010 and a four-year austerity plan to reduce the budget deficit from 32% of GDP. The paper links the crisis to features of the development model that brought high economic growth from 1994 to 2007 and ends by examining the prospects for overcoming the current crisis.

Item Type:	Article
Additional Information:	Estudio sólo disponible en inglés
Uncontrolled Keywords:	Economía y Comercio Internacional / Cooperación Internacional y Desarrollo
Subjects:	INTERNATIONAL COOPERATION > COUNTRIES AND REGIONS > IRELAND PUBLIC FINANCE; BANKING; INTERNATIONAL MONETARY RELATIONS > CURRENCIES; FINANCING > BANKS. PUBLIC FINANCE; BANKING; INTERNATIONAL MONETARY RELATIONS > INTERNATIONAL MONETARY SYSTEM > INTERNATIONAL FINANCIAL MARKET. ECONOMIC CONDITIONS; ECONOMIC RESEARCH; ECONOMIC SYSTEMS > ECONOMIC RESEARCH; ECONOMICS > ECONOMIC ANALYSIS ECONOMIC CONDITIONS; ECONOMIC RESEARCH; ECONOMIC SYSTEMS > ECONOMIC CONDITIONS > ECONOMIC IMPLICATIONS ECONOMIC CONDITIONS; ECONOMIC RESEARCH; ECONOMIC SYSTEMS > ECONOMIC CONDITIONS > CRISIS
Divisions:	Real Instituto Elcano, RIE
Depositing User:	Jorge Horcas Pulido
Date Deposited:	01 Apr 2012 13:41
Last Modified:	01 Apr 2012 13:41
URI:	http://biblioteca.ribei.org/id/eprint/1976

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