This paper describes the causes and consequences of Ireland's economic crisis in the context of the policy solution implemented to contain that crisis: protracted fiscal austerity. I describe the causes of the recent crisis in Ireland, and look at the logic of austerity with a simple model. I...

The paper maps the risk management failures within Anglo Irish Bank, showing that, when banks are systemic in nature, poor internal corporate governance within a Minsky credit cycle can lead to destabilising macroeconomic conditions, which may prolong the effects of a credit-induced downturn....

This paper uses an empirically grounded stock-flow consistent macroeconomic model to assess the impact of a sudden drop in government expenditures in the Irish economy. We are able to use the model to trace the development of the shock through the economy. We show that a sharp, one period...

The European periphery is qualitatively different from the core. This implies that a monetary and fiscal policy mix which benefits the core will not, by definition, benefit the periphery except by coincident or accident. The debtor nations are also qualitatively different from the creditor...

This paper reviews the EU Regulation on short selling and certain aspects of credit default swaps (Regulation (EU) No 236/2012) which will apply from 1 November 2012. The new rules introduce restrictive rules on traders' short-selling of bonds and shares which are admitted to trading on EU...

Stock flow consistent macroeconomic models suffer from the lack of a coherent estimation method due to the complicated nature of the modeling process. This paper provides a candidate estimation method that determines the values of each stock and flow simultaneously by analytically solving any...

This editorial examines global efforts to regulate the shadow banking system, in particular the green paper released by the European Commission in March 2012. It suggests that the financial market landscape in Europe is currently in flux and large swings in market activity — either through...

Ireland has experienced a series of interlocking banking, fiscal, unemployment and political crises since 2007. We detail the challenges involved in modeling individual moments of the crisis through the lens of the balance sheets and transactions matrices between sectors of the Irish society. A...

This paper examines the recently deregulated Irish electricity market. We ask: given this newly imposed institutional structure, does the availability of true marginal prices for electricity products affect the price/quantity bids submitted by market participants? First, we analyse the price...

We examine the relationship between changes in a country's public sector fiscal position and inequality at the top and bottom of the income distribution during the age of austerity (2006-13). We use a parametric Lorenz curve model and Gini-like indices of inequality as our measures to assess...