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Lessons from Irish Economic History; 1690-1990
Focus: The Irish Economy in the 1980s
Irish economic history is vast and varied and a plethora of different lessons have been learnt form each individual era. Many important lessons were learnt from the ‘bust to boom’ years of the late 1970s, 80s and right through to 1990 and it is such that will be examined in further detail in this paper. ... Specific lessons learned in this period will then come to light and will be noted.
O’Connell sums up this dismal period by stating that the Irish economy was in crisis at the end of the 1980s: “…with mass unemployment, falling employment levels, a fiscal crisis of the state and living standards well below the European average, it was widely regarded as ‘a sick man of Europe’.” It is inevitable then that a number of lessons were learnt from this period. ... Economic mistakes of the ‘80s
As has been stated previously: “The decade of the 1980s was particularly severe for the Irish economy. ... This was carried into the 1980s, and when the storm of the world recession hit, it almost wrecked the Irish economy. ... 1 demonstrates growth in GNP, and as we can see the period 1980-1985 was a particularly low time in the Irish economy, during the intensive retrenchment period. ... ”
B) Macro-economic policies
The above changes in the Irish tax system were one of the counter-cyclical measures of macro-economic policy, which aimed to repair the damage done by previous fiscal policy. ...
It has been suggested that the fiscal and monetary policy pursued from 1979 to 1982 was incompatible with maintenance of the Irish pound’s nominal exchange rate with other EMS currencies and caused an increase in inflation. It can be argued that it was macroeconomic policy, which ultimately created any squeeze on exports and employment in the traded sector resulting from the real appreciation of the Irish pound. ... Thus the Irish pound became overvalued. ... It has been said that the appreciation of the real exchange rate probably reduced foreign demand for Irish goods, increasing Irish demand for foreign goods.
Approximate Word count = 1726
Approximate Pages = 6.9
(250 words per page double spaced)
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