Broadly speaking, the balance-of-payments constraint hypothesis as developed by Thirlwall has been empirically supported. Yet it shows some shortcomings highlighted in the literature. In our opinion, two of them must be analyzed. First, temporary disequilibria and capital flows must be...

Broadly speaking, the balance-of-payments-constraint hypothesis as developed by Thirlwall (1979) has been empirically supported. Yet, it fails to interpret correctly the necessary conditions for convergence. Although the neoclassical explanation of economic growth is not necessarily the correct...

Less than 20 years ago, the Irish economy was tired and sluggish, suffering from double-digit unemployment and stagnating incomes. Today, Ireland's "Celtic tiger" economy is one of the fastest growing in the world, exceeding average EUper capita income levels and boasting a thriving technology...