Ireland's net external liability position expanded in dramatic fashion during 2008-2010, despite relatively small net financial flows during this period. Understanding the the source and persistence of this negative shock is critically important in assessing the future path for the Irish...

For the set of EMU member countries, we examine cyclical patterns in fiscal outcomes. We find that there is significant time variation in fiscal cyclicality, with an improvement in the wake of the Maastricht Treaty but a deterioration after the creation of EMU. Furthermore, we show that the...

This paper reviews the growth record of the member countries of the euro area and assesses the outlook for future economic performance. We describe how the external and fiscal adjustment challenges facing the euro periphery amplify the growth risks facing these countries. We address how growth...

This paper explores the contribution of international financial flows to the boom-bust-recovery cycle in Ireland. It finds that a nuanced interpretation is required, in that bank-intermediated debt inflows certainly contributed to the amplification of the property boom during 2003-2007 but that...

Asia came through the global financial crisis relatively well. At the same time, financial globalization means that Asia cannot be fully insulated from international financial shocks. Moreover, it is likely that the rest of the world will undergo a redesign of its international financial...

This paper provides an overview of the cyclical conduct of fiscal policy in Ireland both before and during the crisis. It shows that fiscal policy has been procyclical, with financial shocks amplifying the fiscal cycle. In addition, it highlights the importance of institutional reform and...

This paper argues that large external imbalances pose signifi?cant macroeconomic risks for New Zealand. While New Zealand has coped well in recent years, the global fi?nancial crisis has underlined the vulnerability of defi?cit countries to fi?nancial shocks. New Zealand can draw important...

We study the impact of shocks to different types of government spending on the composition of sectoral output for a panel of EMU member countries. We find that fiscal shocks lead to an increase in the relative size of the nontraded sector. There is typically no significant impact on the level of...

In this paper, I review recent trends in global integration of financial systems and assess the implications for international macroeconomic adjustment. While recent growth in the scale of international balance sheets has been dramatic, product markets remain quite segmented. The mis-match...

Our goal in this project is to gain a better empirical understanding of the international financial implications of currency movements. To this end, we construct a database of international currency exposures for a large panel of countries over 1990-2004. We show that trade-weighted exchange...