Uri Dadush, Bennett Stancil, 06 February 2011

The recent fiscal problems in Greece, Ireland, Italy, Portugal, and Spain have left the single currency in need of rescue. But this column argues that this is only part of the problem. Until leaders deal with the core issues – the periphery’s lost competitiveness and misaligned economic structures – Europe’s rescue will ultimately fail.

Paolo Manasse, 05 February 2011

Recent press reports suggest that Greece and Ireland may be allowed to buy back some of their debt. This column provides an example to show that if the purpose of the restructuring is to reduce the burden of payments for the debtor and to have creditors share the losses, a unilateral partial default or a debt swap would be preferable to a buyback.

Kevin O'Rourke, 14 January 2011

Kevin O’Rourke of Trinity College Dublin talks to Viv Davies about Ireland in crisis and explains how it moved so suddenly from being the ‘Celtic Tiger’ economy to financial meltdown. O’Rourke describes Ireland’s reaction to the bailout, outlines the potential implications for the country and discusses the shortcomings of the European policy response. The interview was recorded by telephone on 13 January 2011. [Also read the transcript]

Guillermo de la Dehesa, 11 January 2011

The past year has plunged the Eurozone into crisis with many fearing for what 2011 has in store. In this column the CEPR Chairman argues that to prevent the Eurozone’s sovereign debt crisis from becoming a self-fulfilling contagion, the bailouts should not go beyond Ireland; they should not be extended to Portugal even less so to Spain. It outlines 10 reasons why.

Ricardo Cabral, 15 December 2010

Jean-Claude Juncker and Giulio Tremonti have recently proposed the creation of a European Debt Agency that would enable each EU country able to issue “European bonds” of up to 40% of GDP. This column argues that while the proposal is a brilliant piece of economic reengineering in favour of the Eurozone creditor countries, especially Germany and France, cooperation would be better for all.

Miguel Cardoso, Rafael Doménech, 13 December 2010

Are concerns over the sustainability of sovereign debt in Europe justified? This column presents data covering 16 developed countries including Greece, Italy, Portugal, and Spain. It shows that these countries have worryingly low levels of human capital and income per head and argues that policymakers in these countries should press ahead with reforms to reassure investors of their future growth potential.

Charles Wyplosz, 03 December 2010

The Eurozone crisis is not over. This column argues that the bailout of Greece and the €750 billion Special Purpose Vehicle set up in May 2010 was the first step down the slippery slope. The first and only possible remedy is to reconstruct the no-bailout clause and let markets discipline governments; the EU has proven that it cannot.

Angelo Baglioni, Umberto Cherubini, 01 December 2010

Bailing out banks has put severe pressure on government finances, particularly in the Eurozone. This column compares 10 EU governments’ explicit bailout commitments with their expected liabilities. It shows that the Irish government’s commitments are an outlier. Faced with a systemic crisis, financial assistance from international institutions is unavoidable.

Paolo Manasse, Giulio Trigilia, 26 November 2010

Is Italy the next European country to go? This column argues that the jury is still out, although the grace period will not extend beyond three years.

Stanley Black, 23 November 2010

With news that Ireland has applied for a bailout worth tens of billions or euros, the dark predictions for the future of the Eurozone grow ever bleaker. This column argues that the problems in the Eurozone’s periphery expose a flaw in its design. It proposes that the ECB set different interest rates for different member countries to help make matters better before they get any worse.

Gilles Mourre, Alessandro Turrini, 20 November 2010

The latest developments in Ireland are putting further strain on the Eurozone, with some calling in to question the future of the single currency. The column looks at what the countries on the periphery of the Eurozone, Greece, Ireland, Italy, Portugal, and Spain can do to restore competitiveness.

Indermit Gill, 09 October 2010

Economic development is not evenly spread, and in some places it is still yet to arrive. This column looks at suggestions from the World Bank’s World Development Report to combat this inequality. It argues that economic growth will be unbalanced, and to try to spread it out – too much, too far, or too soon – is to discourage it. Instead, policymakers should focus on economic integration.

Holger Görg, Aoife Hanley, Eric Strobl, 05 October 2010

A chief concern for countries aiming to attract investment is how it will trickle down to the local economy. This column presents evidence on the effect of government grants to foreign companies investing in Ireland between 1983 and 2002. It finds that the grants had little effect on generating supply links with local firms and argues that governments should instead work towards reducing partner search costs.

Morgan Kelly, 17 May 2010

The Celtic Tiger faces severe challenges. This column argues that the Irish government’s commitment to absorb the losses of its banking system may well lead to a Greek-style debt ratio by 2012. It is a test-in-waiting for the EU, but one that could be solved by a debt for equity swap to cover the losses of Irish banks.

John Cotter, 19 May 2009

Each economy has suffered a unique variant of the global financial crisis. This column details the perilous situation facing Ireland’s banking and property sectors. It says that the government responded poorly, particularly early in the crisis. Most indicators remain quite negative, though there are glimmers of evidence that the economy may begin to improve.

Patrick Honohan, Philip Lane, 28 February 2009

Ireland’s huge exports to GDP ratio and privileged position in global supply chains helped it grow rapidly in the 1990s, but are now amplifying its downturn. This column argues that Ireland’s looming banking and public finance crises can be fixed. The government must find new sources of tax revenue and craft a package in which all social partners can claim ownership.

Patrick Honohan, 26 July 2008

The Irish economy is reeling from a swift drop. This column explains how the “Celtic Tiger” shifted from a converging growth path to an unsustainable property boom. Tough adjustments in wages, taxation and public expenditure will be necessary to undo the damage.

Philip Lane, 01 July 2008

Ireland switched from 5% growth in 2007 to negative growth in 2008. Ireland’s leading macroeconomist discusses that causes and consequences for national policy. A thorough reform of tax and spending policy is the answer, even if it violates the Maastricht limits in the short run.

Kevin O'Rourke, 26 June 2008

Veiled or explicit anti-Irish threats will swing some ‘yes’ voters to the no-camp in a second referendum. If Europe's leaders want the Lisbon Treaty, they must unambiguously commit to respecting the results of a second Irish referendum. This would deprive the no campaign of convincing arguments and help restore the EU’s tarnished image across Europe.

Daniel Gros, 16 June 2008

Incentives are extremely misaligned when a small-nation electorate can punish ‘Brussels’ and its own political class at little or no cost. Ireland represents 1% of the EU, so 99% of the cost of the ‘no’ falls on other members. This column proposes a radical solution – the other EU members should propose to leave the old EU and create a new one with the Lisbon Treaty as its founding document. The Irish would then have to decide whether they’re in or out.

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