Warianty tytułu
Języki publikacji
Abstrakty
Will Ireland share the fate of Iceland? Is this open, small economy with a debt-to-GDP ratio of above 130% on the verge of bankruptcy? Economists argue that if public debt is greater than national income, then smaller economies, heavily involved in the international division of labor are at risk of becoming insolvent. The bankruptcy of Ireland, whose prosperity is based on its reputation for being a good place to do business, could be a catastrophy. Contrary to the countries of southern Europe, the economy of the Green Island has never had problems with paying its liabilities and with solvency. While Greece has gone bankrupt five times since gaining independence in 1826 and Spain as many as thirteen in the past two centuries, Ireland's history in this area is impeccable (Reinhard, Rogoff, 2009, p. 3-6). Since the beginning of the 21st century Ireland's economic development has been based mainly on construction industry and not exports, as it used to be in the 1990s when the country was nicknamed the Celtic Tiger. The boom resulted in a budget surplus and a positive balance in current settlements. But it also resulted in higher prices - the Irish no longer had to accept slow wage growth to stay internationally competitive - which, combined with the low nominal interest rate of the European Central Bank, provided fertile ground for the build-up of the real estate bubble. The aim of the article is to identify the factors that led Ireland to the brink of bankruptcy and to try to answer the question whether the action of recapitalization of failing banks by the government and international financial institutions will bring the expected results in the form of healing the financial system and returning Green Island to the path of economic growth. (original abstract)
Rocznik
Numer
Strony
55--66
Opis fizyczny
Twórcy
autor
- Kazimierz Pułaski University of Technology and Humanities in Radom, Poland
Bibliografia
- Economic Crisis in Europe: Causes, Consequences and Responses, European Commission 2009.
- European Commission, Public Finances in EMU-2009.
- IMF 2010.
- Kalinowska K. (2011), Irlandia - porażka doktryny liberalnej?, E. Kwiatkowski, . Kucharski (red.), Wzrost gospodarczy ? rynek pracy ? polityka państwa, Wydawnictwo Uniwersytetu Łódzkiego, Łódź.
- Kwiatkowski E., Kucharski L. (2011), Wzrost gospodarczy - rynek pracy - polityka państwa, Wydawnictwo Uniwersytetu Łódzkiego, Łódź.
- Public Finances in EMU - 2009, European Commission 2009.
- Reinhard C., Rogoff K. (2009), This Time It's Different: Eight Centuries of Financial Folly, Harvard University.
- Roubini N., Mim S. (2011)., Ekonomia kryzysu, Wolters Kluwer Polska Sp. z o.o., Warsaw.
- Stiglitz E. (2009), Selected Works of Joseph E. Stiglitz: Volume I: Information and Economic Analysis, Oxford University Press.
- www.ft.com
Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171637259