Hostname: page-component-848d4c4894-sjtt6 Total loading time: 0 Render date: 2024-07-02T20:43:05.323Z Has data issue: false hasContentIssue false
  • English
  • Français

The Irish Fiscal Crisis

Published online by Cambridge University Press:  26 March 2020

Adele Bergin ,
John Fitz Gerald ,
Ide Kearney  and
Cormac O'Sullivan
Adele Bergin
Affiliation:
ESRI, Dublin
John Fitz Gerald*
Affiliation:
ESRI, Dublin
Ide Kearney
Affiliation:
ESRI, Dublin
Cormac O'Sullivan
Affiliation:
ESRI, Dublin
*
e-mail [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper considers the origins and characteristics of the current economic crisis in Ireland. In particular, it examines how fiscal policy contributed to the crisis rather than preventing it. The paper gives details of the major fiscal tightening that is under way. By 2014 the authorities will have implemented a package of ex ante cuts equivalent to one-fifth of GDP. The costs of this package, together with the more permanent effects of the recession on potential output, are discussed and the legacy effects of the crisis for government indebtedness are analysed.

Keywords

Fiscal policydebt sustainabilityIrelandE62H63H68
Type
Research Articles
Information
National Institute Economic Review , Volume 217 , July 2011 , pp. R47 - R59
Copyright
Copyright © 2011 National Institute of Economic and Social Research

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Addison-Smyth, D. and McQuinn, K. (2010), ‘Quantifying revenue windfalls from the Irish housing market’, Economic and Social Review, 41, 2, Summer, pp. 201–22.Google Scholar
Barrell, R., Fic, T., FitzGerald, J., Orazgani, A. and Whitworth, R. (2011), ‘The banking sector and recovery in the EU economy’, National Institute Economic Review, 216, April, pp.R4I-52.CrossRefGoogle Scholar
Barrett, A., Fitz Gerald, J. and Nolan, B. (2002), ‘Earnings inequality, returns to education and immigration into Ireland’, Labour Economics, 9, 5.CrossRefGoogle Scholar
Barrett, A. and Goggin, J. (2010), ‘Returning to the question of a wage premium for returning migrants’, National Institute Economic Review, 213, July, pp. R43–5I.CrossRefGoogle Scholar
Barry, F. and Fitz Gerald, J. (2001), ‘Irish fiscal policy in EMU and the Brussels-Dublin controversy’, in Fiscal Policy in EMU: Report of the Swedish Committee on Stabilization Policy in EMU, Stockholm, Statens Offentliga Utredningar.Google Scholar
Bergin, A., Conefrey, T., Fitz Gerald, J. and Kearney, I. (2009), ‘The behaviour of the Irish economy: shocks to the HERMES macroeconomic model’, ESRI Working Paper no. 287, Dublin, The Economic and Social Research Institute.Google Scholar
Bergin, A., Conefrey, T., Kearney, I. and Fitz Gerald, J. (2010), ‘Recovery scenarios for Ireland: an update’, in ESRI Quarterly Economic Commentary, Summer.Google Scholar
Blanchard, O. (2001), ‘Country adjustments within the euro area: lessons after two years’, in Defining a Macroeconomic Framework for the Euro Area, London, CEPR.Google Scholar
Blanchard, O. (2007), ‘Current account deficits in rich countries’, NBER Working paper No. 12925.Google Scholar
Conefrey, T. and Fitz Gerald, J. (2010), ‘Managing housing bubbles in regional economies under EMU: Ireland and Spain’, National Institute Economic Review, 211, 1, pp. 211–99.Google Scholar
Department of Finance (2011), Stability Programme Update, April 2011 http://www.finance.gov.ie/documents/publications/reports/20ll/spuirelandapr20ll.pdf.Google Scholar
European Commission (2001), European Economy - Public Finances in EMU, No. 3.Google Scholar
European Commission (2011), The Economic Adjustment Programme for Ireland, Spring 2011 Review, April.Google Scholar
Fitz Gerald, J. (2011), ‘The Irish economy today: albatross or phoenix?’, ESRI Working Paper No. 384, April 2011.Google Scholar
Fitz Gerald, J., Bergin, A., Kearney, I., Barrett, A., Duffy, D., Garrett, S. and McCarthy, Y. (2005), Medium-Term Review: 2005-2012, Dublin, The Economic and Social Research Institute.Google Scholar
Fitz Gerald, J. and Morgenroth, E. (eds) (2006), Ex Ante Evaluation of the Investment Priorities for the National Development Plan 20072013, Policy Research Series No. 59, Dublin, The Economic and Social Research Institute.Google Scholar
HM Treasury (2003), Fiscal Stabilisation and EMU, London, HM Treasury.Google Scholar
Honohan, P. (1999), ‘Fiscal adjustment and disinflation in Ireland: setting the basis for economic recovery and expansion’, in Barry, F. (ed.), Understanding Ireland's Econmic Growth, London, Macmillan, pp. 75–98.CrossRefGoogle Scholar
IMF (2011), Ireland Country Report 11/109, May.Google Scholar
Kearney, I., McCoy, D., Duffy, D., McMahon, M. and Smyth, D. (2000), ‘Assessing the stance of Irish fiscal policy’, in Barrett, A. (ed.), Budget Perspectives, Proceedings of a Conference held on 19 September 2000, ESRI.Google Scholar
Lane, P. (2010), ‘A new fiscal framework for Ireland’, Journal of the Statistical and Social Inquiry Society of Ireland, XXXIX, 2009/10.Google Scholar
McCarthy, Y. and O'Malley, E. (2006), ‘New drivers of growth? Sectoral contributions to the Irish economy’, Special Article in Quarterly Economic Commentary, Summer, ESRI.Google Scholar
Nyberg, P. (2011), ‘Misjudging risk: causes of the systemic banking crisis in Ireland’, Report of the Commission of Investigation into the Banking Sector in Ireland, available at: http://www.finance.gov.ie/documents/publications/reports/20II/nybergreport.pdf.Google Scholar
O'Leary, J. (2010), ‘External surveillance of Irish fiscal policy during the boom’, Irish Economy Note No. II, available at: http://www.irisheconomy.ie/Notes/IrishEconomyNoteII.pdf.Google Scholar
Regling, K. and Watson, M. (2010), ‘A preliminary report on the sources of Ireland's banking crisis’, available at http://www.bankinginquiry.gov.ie/.Google Scholar