Ireland’s economic crisis

the good, the bad and the ugly

Karl Whelan

University College Dublin

Abstract

This paper provides an overview of Ireland’s macroeconomic performance over the past decade. In addition, to presenting the underlying facts about the boom, bust and (currently limited) recovery, the paper also discusses some common fallacies and misrepresentations of economic events in Ireland. The paper concludes with some broader lessons from the Irish experience for Eurozone economic policy and some observations on the role that EMU and the ECB have played in Ireland’s crisis.

Keywords: Ireland, Euro Area, Euro Crisis, Banking

JEL Classifications: E52,E62, G01

Acknowledgements: The views expressed are my own and do not necessarily reflect those of the Bank of Ireland.

Correspondence:

Karl Whelan

University College Dublin

UCD School of Economics

Newman Building,

Belfield, Dublin 4, Ireland

Tel.: + 353 1 716 8239

Email: karl.whelan@ucd.ie