Celtic Tiger

44 results back to index


pages: 482 words: 149,351

The Finance Curse: How Global Finance Is Making Us All Poorer by Nicholas Shaxson

activist fund / activist shareholder / activist investor, Airbnb, airline deregulation, anti-communist, bank run, banking crisis, Basel III, Bernie Madoff, Big bang: deregulation of the City of London, Blythe Masters, Boris Johnson, Bretton Woods, British Empire, business climate, business cycle, capital controls, carried interest, Cass Sunstein, Celtic Tiger, central bank independence, centre right, Clayton Christensen, cloud computing, corporate governance, corporate raider, creative destruction, Credit Default Swap, cross-subsidies, David Ricardo: comparative advantage, demographic dividend, Deng Xiaoping, desegregation, Donald Trump, Etonian, failed state, falling living standards, family office, financial deregulation, financial innovation, forensic accounting, Francis Fukuyama: the end of history, full employment, gig economy, Gini coefficient, global supply chain, high net worth, income inequality, index fund, invisible hand, Jeff Bezos, Kickstarter, land value tax, late capitalism, light touch regulation, London Whale, Long Term Capital Management, low skilled workers, manufacturing employment, Mark Zuckerberg, Martin Wolf, Mont Pelerin Society, moral hazard, neoliberal agenda, Network effects, new economy, Northern Rock, offshore financial centre, old-boy network, out of africa, Paul Samuelson, plutocrats, Plutocrats, Ponzi scheme, price mechanism, purchasing power parity, pushing on a string, race to the bottom, regulatory arbitrage, rent-seeking, road to serfdom, Robert Bork, Ronald Coase, Ronald Reagan, shareholder value, sharing economy, Silicon Valley, Skype, smart grid, Social Responsibility of Business Is to Increase Its Profits, South Sea Bubble, sovereign wealth fund, special economic zone, Steve Ballmer, Steve Jobs, The Chicago School, Thorstein Veblen, too big to fail, transfer pricing, wealth creators, white picket fence, women in the workforce, zero-sum game

While Blair and Clinton waited until they had left office to take on lucrative consultancies, Haughey was happy to enrich himself while still in office. And the Celtic Tiger economy that he helped usher in would be the shining poster child for them all. 6 The Celtic Tiger The tale of the Celtic Tiger, the Irish economic growth miracle of the 1990s and early 2000s, has become one of the most influential morality tales in the economic history of the modern world. The Irish model of low corporate taxes offered the ultimate free lunch: painless tax cuts leading to economic growth and, ultimately, larger tax revenues from the flood of new investment generated by those cuts. ‘The Irish formula [became] the new universal truth of economics, society and development,’ wrote Fintan O’Toole, a commentator for the Irish Times and author of Ship of Fools, a firecracker of a book about the Celtic Tiger. ‘It transcended history and geography and worked irrespective of time and place.’1 And though the boom contained a lot of froth, and the global financial crisis mauled Ireland worse than most countries, the tiger was no illusion, and the beast remains alive today: foreign investment remains strong; cranes decorate the skyline again; cafés groan with banker-talk, and there is a palpable sense of life and purpose in Dublin.

See ‘Bono rejects criticism of U2 tax status’, Irish Times, 27 February 2009. 14. Fintan O’Toole, Ship of Fools, p.36. 15. ‘World Bank, Foreign direct investment, net inflows (percentage of GDP) for Ireland,’ available at data.worldbank.org. For a brief summary of the two booms, see Jack Copley, ‘The Celtic Tiger: the Irish banking inquiry and a tale of two booms’, foolsgold.international blog, 5 May 2016. He in turn cites D. O’Hearn ‘Globalization, “New Tigers”, and the End of the Developmental State? The Case of the Celtic Tiger’, Politics and Society 28:1, 2000, pp.67–92; and P. Kirby, Celtic Tiger in Distress: Explaining the Weaknesses of the Irish Model, second edition, Palgrave Macmillan, 2010. 16. The Apple subsidiary was Apple Sales International. See ‘Offshore profit shifting and the U.S. tax code – Part 2 (Apple Inc.)’, US Senate Permanent Subcommittee on Investigations, 21 May 2013.

‘Visit Shannon and you get an indulgence.’ This backstory illuminates the supposed magic trick that Ireland hit upon: corporate tax-cutting and financial deregulation as the magic potion of economic growth. But there is a wrinkle in this happy tale, and it is a big one. Ireland’s economic growth under the Celtic Tiger shows no correlation – no correlation at all – to its long history as a corporate tax haven. In fact, Ireland’s population may well have been better off without its corporate tax cuts and its wild-west financial centre. The real story of the Celtic Tiger lies elsewhere. Ireland’s tax haven strategy was never about secrecy, as in some tax havens, but about corporate tax cuts. The strategy properly began in 1956 with a facility called Export Profits Tax Relief – an aggressive corporate tax haven strategy by the standards of the day which, once tweaked and embedded, meant zero taxes on export sales of manufactured goods.


pages: 301 words: 77,626

Home: Why Public Housing Is the Answer by Eoin Ó Broin

Airbnb, carbon footprint, Celtic Tiger, financial deregulation, housing crisis, Kickstarter, land reform, mortgage debt, negative equity, open economy, passive investing, quantitative easing, Right to Buy, Ronald Reagan, the built environment

As ever expanding financial providers sought out ever more lucrative markets a toxic housing-finance feedback cycle was put in motion, driving up prices and forcing decisions on housing to be made not according to public need or proper planning but on the basis of bottom line return. This cycle lay at the heart of the rise of the Celtic Tiger from 1996 and the global Great Recession from 2008. It drove up house prices and rents, and fuelled an affordability crisis that in turn accelerated the social housing and homelessness crises in the decade after the recession. While post-crash bank caution and sensible macro-prudential mortgage lending regulations by the Central Bank have constrained mortgage credit for individual households it would be wrong to think that the Celtic Tiger era housing-finance feedback cycle is gone. Rather the risks to our housing system from the financial sector have simply moved from household lending to a host of investment vehicles.

Housing Agency. (2018) Summary of Social Housing Assessments 2018. Irish Human Rights and Equality Commission, ESRI. (2018) Discrimination and Inequality in Housing in Ireland. Kenna, Padraic. (2011) Housing Law, Rights and Policy. Clarus Press. Keogh, Dermot. (1994) Twentieth-Century Ireland: Nation and State. Gill and Macmillan. Kirby, Peadar. (2002) The Celtic Tiger in Distress: Growth with Inequality in Ireland. Palgrave. Kirby, Peadar, Mary Murphy. (2007) Ireland as a Competition State. IPEG Papers. Kirby, Peadar. (2010) Celtic Tiger in Collapse: Explaining the Weaknesses of the Irish Model. Palgrave. Lee, J.J. (1989) Ireland, 1912–1985: Politics and Society. Cambridge University Press. Lewis, Eddie. (2019) Social Housing Policy in Ireland: New Directions. Institute of Public Administration. MacDermott, Eithne. (1998) Clann na Poblachta.

Meanwhile the social rental sector declined marginally from 10 percent in 1991 to 9.8 percent in 2002 while the private rental sector rose from 9 percent to 12.7 percent during the same period. As the millennium approached the Southern Irish housing system was set for a period of massive growth in investment and house building. So too in housing need as ever greater numbers of people were unable to access secure or affordable housing either from the private market or from Local Authorities and the Approved Housing Body sector. House Prices Explode The arrival of the Celtic Tiger economy can be measured against a number of indicators including rising levels of employment, increasing Gross Domestic Product and greater levels of consumer spending. However, given the centrality of housing to both the boom and subsequent bust, the arrival of double digit house price inflation is probably the best gauge of when the Tiger economy really started to roar. Through the early years of the 1990s house price inflation and output were modest.


The Transformation Of Ireland 1900-2000 by Diarmaid Ferriter

anti-communist, Bob Geldof, British Empire, Celtic Tiger, collective bargaining, deliberate practice, edge city, falling living standards, financial independence, ghettoisation, greed is good, hiring and firing, housing crisis, immigration reform, income per capita, land reform, manufacturing employment, moral panic, New Journalism, New Urbanism, offshore financial centre, open economy, postnationalism / post nation state, sensible shoes, the market place, upwardly mobile, urban renewal, wage slave, women in the workforce

Magill, August 1986, p. 46. 151. Irish Times, 19 September 2000. 152. Coogan, Disillusioned Decades, p. 150. 153. Ardagh, Ireland and the Irish, p. 315. 154. Kevin Kenny, The American Irish: A History (Harlow, 2000), p. 223. 155. ibid., foreword. 156. Ray O’Hanlon, The New Irish Americans (Dublin, 1998), p. 157. 157. Sweeney, Celtic Tiger, p. 5. 158. O’Hagan (ed.), The Economy of Ireland, pp. 40–41. 159. Ó Gráda, Rocky Road, p. 90. 160. Denis O’Hearn, Inside the Celtic Tiger: The Irish Economy and the Asian Model (London, 1998), p. x. 161. Fintan O’Toole, Mass for Jesse James, p. 108. 162. ibid. 163. McDonald, Construction of Dublin, pp. 202ff. 164. Hourihane, She Moves through the Boom, pp. 48–9. 165. Ferriter, Lovers of Liberty?, pp. 26–8, and Magill, December 1997, p. 37. 166.

An insert in the play’s programme pointed out that many of the latter were living in dreadful conditions in the bigger urban centres of England. But there was a strong political point to be made also: the emigrants’ remittances are testimony to the sacrifices made so selflessly by our emigrants to sustain our Irish economy over the years. These unique people rebuilt Britain after the Second World War, and were our original ‘Celtic Tiger’, helping us pay off our own national debt. Now the Irish economy is booming, it is time that we pay off our second national debt, which is due to our emigrants, not in charity, but in justice.68 This was a long overdue recognition of something which many in Ireland had refused to accept in the post-war period, including those who had gone so far as to accuse those who did not stay at home of being unpatriotic, even though so much emigration in the 1950s was born of necessity.

Other issues too could now be added to O’Faoláin’s list: the troubled health system, serious traffic problems, the high cost of living, the Euro, child abuse, the environment, racism, drink-induced violence, the fortunes of the Irish football team in world cups, military neutrality, and the belief that high taxation was a persecution which, through their suffering in the 1980s, the middle classes had earned the right to be absolved from. Ireland finished the twentieth century richer than could have been imagined, even during the relative affluence of the 1960s. A new middle-class generation, on the cusp of adulthood in the late 1990s, had never known anything but economic prosperity. It is still jolting to read the opening line of one of the books that sought to explain what became known as the ‘Celtic Tiger’: ‘Ireland has had the fastest growing economy in the world in the last years of the twentieth century.’129 After decades of under-development and stagnation, ‘Ireland’ had become rich. But what was done (and not done) with that wealth would remain a source of fierce debate. Critical observers depicted a society that had become vulgar in its opulence, and indifferent to redistribution. The journalist Anne Marie Hourihane, in her book She Moves through the Boom, cast a cynical eye on the palatial mansions appearing in south County Dublin, as the new residents outdid their 1960s counterparts, and adorned their neighbourhoods with the ghosts of Irish literary and cultural icons: Out of eight houses that are occupied on the left-hand side of the culde-sac we count four jeeps, one Jaguar and a Porsche … As you look around the development from the Japanese-style pond, at the yellow apartments with palms, at the top balconies, you wonder where you are.


Lonely Planet Ireland by Lonely Planet

bank run, banking crisis, Berlin Wall, Bernie Sanders, bike sharing scheme, Bob Geldof, British Empire, carbon footprint, Celtic Tiger, credit crunch, G4S, glass ceiling, global village, haute cuisine, hydraulic fracturing, Intergovernmental Panel on Climate Change (IPCC), Jacquard loom, Kickstarter, land reform, reserve currency, sustainable-tourism, young professional

By the mid-1960s his economic policies had halved emigration and ushered in a new prosperity that was to be mirrored 30 years later by the Celtic Tiger. A History of Ireland by Mike Cronin summarises all of Ireland's history in less than 300 pages. It's an easy read, but doesn't offer much in the way of analysis. Partners in Europe In 1972 the Republic (along with Northern Ireland) became a member of the European Economic Community (EEC). This brought an increased measure of prosperity thanks to the benefits of the Common Agricultural Policy, which set fixed prices and guaranteed quotas for Irish farming produce. Nevertheless, the broader global depression, provoked by the oil crisis of 1973, forced the country into yet another slump and emigration figures rose again, reaching a peak in the mid-1980s. The Celtic Tiger In the early 1990s, European funds helped kick-start economic growth.

Despite slow and steady improvements, the city – like the rest of Ireland – continued to be plagued by rising unemployment, high emigration rates and a general stagnation that hung about like an impenetrable cloud. Dubliners made the most of the little they had, but times were tough. The city has been in and out of recession for decades, but the dramatic dip that followed the sky-high good times of the Celtic Tiger was especially severe: Dublin is recovering more than the rest of the country, but recuperation has still been slow. Neighbourhoods at a Glance 1Grafton St & Around The bustling heart of the city centre revolves around pedestrianised Grafton St and the warren of streets around it. Within its easily walkable confines, this neighbourhood is where most of the action takes place, where you’ll find the biggest range of pubs and restaurants, and where most Dubliners come to blow off some retail steam.

Joyce admirers from around the world descend on Dublin every year on 16 June to celebrate Bloomsday and retrace the steps of Ulysses' central character, Leopold Bloom. It is a slightly gimmicky and touristy phenomenon that is aimed at Joyce fanatics and tourists, but it's plenty of fun and a great way to lay the groundwork for actually reading the book. 4Sleeping The surge in tourist numbers and the relative lack of beds means hotel prices are higher than they were during the Celtic Tiger years. There are good midrange options north of the Liffey, but the biggest spread of accommodation is south of the river, from midrange Georgian townhouses to the city's top hotels. Budget travellers rely on the selection of decent hostels. Grafton Street & Around Grafton St itself has only one hotel – one of the city's best – but you'll find a host of choices in the area surrounding it.


A United Ireland: Why Unification Is Inevitable and How It Will Come About by Kevin Meagher

Boris Johnson, British Empire, Celtic Tiger, cognitive dissonance, colonial rule, deindustrialization, knowledge economy, kremlinology, land reform, Nelson Mandela, period drama, Right to Buy, trade route, transaction costs

In recent years it has conveniently skipped over the Industrial Revolution and headed straight for the intellectual, capitalintensive industries of the knowledge economy. A young, well-educated workforce (nearly half the Republic’s population – 49 per cent – is under thirty-five, whereas the EU average is just 40 per cent), a competitive tax regime, membership of the single market and a huge hinterland in the United States has provided a potent mix (especially as US companies account for two-thirds of foreign direct investment into Ireland). The Celtic Tiger years, from the mid-1990s until the crash of 2008, saw the Irish economy soar, with growth rates of 5–6 per cent a year. In 2005, The Economist Intelligence Unit found the Republic had the highest quality of life in the world, according to the basket of criteria in its quality-of-life index, beating Switzerland into second place (while Great Britain only managed the twenty-ninth spot). The boom – long, keenly felt and unprecedented in the history of the Irish state – was, as all debt-fuelled property booms are, built on quicksand.

In its assessment of sub-categories, the IMDWCC found Ireland was actually first for ‘Real GDP Growth’, ‘Flexibility and adaptability of people’, ‘Real GDP Growth per capita’, ‘Investment Incentives’, ‘National Culture’ and ‘Finance Skills’. As clean bills of health go, it was pretty emphatic and evidence that Ireland is keen to get back down to business. (Indeed, the World Bank calculates the Irish economy has been growing by around 2.5 per cent a year since 2012.) A key ingredient in this success has been the Republic’s record of wooing foreign direct investment. The approach became a cornerstone during the Celtic Tiger years, but the strategy stretches further back to the economic reforms of Seán Lemass in the 1960s. Indeed, it goes even further back than that, to Henry Ford, who was one of the first major foreign investors in the country back in 1917, opening a car plant in Cork, the birthplace of his father. (It is said that by 1930, 7,000 of the 80,000 inhabitants of the city worked for Ford Motors.) IDA Ireland, the country’s inward investment agency, continues this tradition.


Ireland (Lonely Planet, 9th Edition) by Fionn Davenport

air freight, Berlin Wall, Bob Geldof, British Empire, carbon footprint, Celtic Tiger, centre right, credit crunch, glass ceiling, global village, haute cuisine, Intergovernmental Panel on Climate Change (IPCC), Jacquard loom, Kickstarter, McMansion, new economy, period drama, reserve currency, risk/return, sustainable-tourism, urban planning, urban renewal, urban sprawl, young professional

* * * Return to beginning of chapter GROWING PAINS & ROARING TIGERS Unquestionably the most significant figure since independence, Éamon de Valera’s contribution to an independent Ireland was immense but, as the 1950s stretched into the 1960s, his vision for the country was mired in a conservative and traditional orthodoxy that was patently at odds with the reality of a country in desperate economic straits, where chronic unemployment and emigration were but the more visible effects of inadequate policy. De Valera’s successor as Taoiseach was Sean Lemass, whose tenure began in 1959 with the dictum ‘a rising tide lifts all boats’. By the mid-1960s his economic policies had halved emigration and ushered in a new prosperity that was to be mirrored 30 years later by the Celtic Tiger. In 1972 the Republic (along with Northern Ireland) became a member of the European Economic Community (EEC), which brought an increased measure of prosperity thanks to the benefits of the Common Agricultural Policy, which set fixed prices and guaranteed quotas for Irish farming produce. Nevertheless, the broader global depression, provoked by the oil crisis of 1973, forced the country into yet another slump and emigration figures rose again, reaching a peak in the mid-1980s.

Huge sums of money were invested in education and physical infrastructure, while the renewal of Lemass’ industrial policy of incentivising foreign investment through tax breaks and the provision of subsidies made Ireland very attractive to high-tech businesses looking for a door into EU markets. In less than a decade, Ireland went from being one of the poorest countries in Europe to one of the wealthiest: unemployment fell from 18% to 3.5%, the average industrial wage somersaulted to the top of the European league and the dramatic rise in GDP meant that the government had far more money than it knew what do with. Ireland became synonymous with the Celtic Tiger, an economic model of success that was the envy of the entire world. Coupled with Ireland’s economic growth was a steady social shift away from the Catholic Church’s overwhelmingly conservative influence, which was felt virtually everywhere, not least in the state’s schools and hospitals and over every aspect of social policy. From the 1980s onwards, steady campaigning resulted in new laws protecting gay rights, access to contraception and a successful referendum on divorce.

Over 100,000 people attend Sands’ funeral. 1993 Downing Street Declaration is signed by British prime minister John Major and Irish prime minister Albert Reynolds. It states that Britain has no ‘selfish, strategic or economic interest in Northern Ireland’. Mid-1990s Low corporate tax, restraint in government spending, transfer payments from the EU and a low-cost labour market result in the ‘Celtic Tiger’ boom, transforming Ireland into one of Europe’s wealthiest countries. 1994 Sinn Féin leader Gerry Adams announces a ‘cessation of violence’ on behalf of the IRA on 31 August. In October the Combined Loyalist Military Command also announces a ceasefire. 1998 On 10 April negotiations culminate in the Good Friday Agreement, under which the new Northern Ireland Assembly is given full legislative and executive authority. 1998 The ‘Real IRA’ detonates a bomb in Omagh, killing 29 people and injuring 200.


Global Financial Crisis by Noah Berlatsky

accounting loophole / creative accounting, asset-backed security, banking crisis, Bretton Woods, capital controls, Celtic Tiger, centre right, circulation of elites, collapse of Lehman Brothers, collateralized debt obligation, corporate raider, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, deindustrialization, Doha Development Round, energy security, eurozone crisis, financial innovation, Food sovereignty, George Akerlof, God and Mammon, Gordon Gekko, housing crisis, illegal immigration, income inequality, market bubble, market fundamentalism, mass immigration, moral hazard, new economy, Northern Rock, purchasing power parity, quantitative easing, race to the bottom, regulatory arbitrage, reserve currency, Robert Shiller, Robert Shiller, Ronald Reagan, shareholder value, South China Sea, structural adjustment programs, too big to fail, trade liberalization, transfer pricing, working poor

The Spanish government is still essentially in denial about the scale of the correction needed and has been busy trying to spend its way out of trouble, with the predictable negative consequence that the country’s once solid fiscal surplus is now spiraling downward into deficit at breathtaking speed. Indeed, the European Commission (EC) has already initiated an excess deficit procedure against Spain. As for Ireland, it was not so long ago that the country’s economy was experiencing a boom of such proportions that it came to be known as the “Celtic Tiger.” Now, the tiger is tanking. The EC forecasts a 5 percent contraction in GDP this year; unemployment is widely expected to hit 11 percent; and house prices have plummeted. As a result, the Irish fiscal deficit is expected to rise to 9.4 percent in 2009. Again, the EC has opened an excess deficit procedure, and the country is being threatened with losing its AAA debt rating [its debt will be considered less safe, or less likely to be repaid]. 94 Effects of the Global Financial Crisis on Wealthier Nations The Crisis in Eastern Europe and Scandinavia The EU’s [European Union’s] most recent members are also feeling the chilly winds of recession.

., 16–17, 32, 34, 38–39 real estate, world, 18, 87, 209– 210 stock market, 41, 87 technology economy, 56–57 Building industry economic growth contributions, 34 slowdowns, 131, 133 Bulgaria, 95, 98, 99 Bunning, Jim, 202 Business failures, 19 Business subsidies, 201, 202–206 “Buy American” provisions, stimulus plans, 181–182 C Cable, Vince, 42–52 Calderón, Felipe, 182 California, homelessness, 75, 76–77 Campaign contributions, 201, 206 Canada, 80–84 Canada Mortgage and Housing Corporation, 82 Capital ratios, 103, 216–217, 221, 227 Caribbean, 160–161 Carmody, Sean, 85–91 Cash. See Liquidity crises Cato Institute, 202–203 “Celtic Tiger” phenomenon, 94 Charitable agencies, 76–77, 123– 124, 137 Chauzy, Jean-Philippe, 133–134 Chávez, Hugo, 184 Index Chile, 161–162 China, 22–26, 65–71, 108–120, 135–142, 143–149 blames U.S. policies for crisis, 22–26 could use crisis to become responsible world power, 143–149 crisis may worsen poverty, 135–142 economic growth and success, 136–137, 144, 145 G-20 role, 145, 146 investment, U.S., 18, 24, 144, 147 migrant workers, 110, 116, 130 must join with U.S. to control crisis, 65–71 stimulus packages, 19, 135, 140, 141–142, 144–145 trade with Africa, 195 trade with U.S., 65, 66, 70–71, 144, 147 unrest, 19, 25, 108–120, 139– 140 Clearinghouse regulations, 49–50 Climate change policy, 26, 163 Collateralized debt obligations (CDOs), 50, 88 Colombia, 161–162, 180, 182, 183, 184 Common Cause, 205–206 Communist Party, China, 110, 114–116, 139–140 Comparative advantage, 192–193 Competitiveness, financial, 48–49 Congress business subsidies, 202, 203, 204, 205–206 hearings, 175 predatory lending, 206 protectionism and trade agreements, 181, 182, 184 Construction industry, 34, 130, 131, 133 Consumer confidence, 63, 91, 100, 208, 213, 216 Corporate welfare, 201, 202–206 See also Bailouts Cox, Pamela, 158–159 Credit default swaps (CDSs), 17, 28, 29, 50, 175–176, 215 Credit derivatives.


pages: 441 words: 113,244

Seasteading: How Floating Nations Will Restore the Environment, Enrich the Poor, Cure the Sick, and Liberate Humanity From Politicians by Joe Quirk, Patri Friedman

3D printing, access to a mobile phone, addicted to oil, Affordable Care Act / Obamacare, agricultural Revolution, Albert Einstein, barriers to entry, Branko Milanovic, British Empire, Buckminster Fuller, Burning Man, business climate, business cycle, business process, California gold rush, Celtic Tiger, Charles Lindbergh, clean water, Colonization of Mars, Dean Kamen, Deng Xiaoping, drone strike, Elon Musk, en.wikipedia.org, failed state, financial intermediation, Gini coefficient, happiness index / gross national happiness, income inequality, Intergovernmental Panel on Climate Change (IPCC), joint-stock company, joint-stock limited liability company, Kickstarter, low skilled workers, Machinery of Freedom by David Friedman, Mark Zuckerberg, megacity, minimum wage unemployment, Network effects, new economy, obamacare, offshore financial centre, open borders, paypal mafia, peak oil, Peter H. Diamandis: Planetary Resources, Peter Thiel, price stability, profit motive, Ronald Coase, Ronald Reagan, Shenzhen was a fishing village, Silicon Valley, special economic zone, standardized shipping container, stem cell, trade route, UNCLOS, UNCLOS, undersea cable, young professional

How the Beatles Rocked the Kremlin (Television production). New York, NY: WNET.org accessed November 13, 2009. See also Michael Walsh, “The Beatles Ignited a Cultural Revolution in the Soviet Youth That Helped Overthrow the USSR: Former Spy,” Daily News, June 1, 2013, www.nydailynews.com/news/world/beatles-beat-communism-spy-article-1.1360024. “the Celtic Tiger” had surpassed the per capita wealth of the United Kingdom: Benjamin Powell, “Economic Freedom and Growth: The Case of the Celtic Tiger,” Cato Journal 22, no. 3 (2003): 431–48, http://mercatus.org/uploadedFiles/Mercatus/Publications/Tiger.pdf. Hong Kong has one of the highest GDPs per person: “Nominal GDP List of Countries. Data for the Year 2010,” World Economic Outlook Database, September 2011, International Monetary Fund. one of the highest life expectancies: “Life Expectancy Around the World,” Live Science, 1 August 1, 2012, www.livescience.com/22005-highest-and-lowest-life-expectancy-at-birth-infographic.html.

Asian hyperaccelerations of wealth sparked the beginnings of a movement around the world to establish special economic zones, usually designed to encourage foreign private investors through lower taxes and tariffs. The rush of small states to embarrass former empires was under way. The island of Ireland, one of Europe’s poorest countries for more than two centuries, set a new economic policy favoring open markets in the 1990s, and by the end of the decade, “the Celtic Tiger” had surpassed the per capita wealth of the United Kingdom. Later, the Baltic states of Estonia, Latvia, and Lithuania adopted more market-friendly policies and transformed themselves into modern productive societies, easily surpassing their former Russian occupiers. Tariffs do not exist in Hong Kong. No business licenses are required for any business. No restrictions of any kind are imposed on financial transactions in and out of Hong Kong.


Rough Guide DIRECTIONS Dublin by Geoff Wallis

Celtic Tiger, Columbine, glass ceiling, haute cuisine

CUSTOM HOUSE DOME 03 Places Dublin 61-184.indd 134 Around the Custom House Just around the corner from the Custom House on Beresford Place, and facing Liberty Hall, the headquarters of SIPTU, Ireland’s largest trade union, stands, appropriately, a statue of James Connolly – socialist theorist, trade union activist and one of the leaders of the Easter Rising. Nearby, at the junction with Abbey Street Lower, Oisín Kelly’s remarkable Chariot of Life sculpture shows a charioteer struggling to control his horses, meant to represent the conflict between passion and reason. The mammoth forty-acre site of the International Financial Services Centre dominates the eastern edge of Memorial Road, a symbol of the “Celtic Tiger” boom of the 1990s. Irish Famine Memorial Custom House Quay. Set between the looming presence of the IFSC and the Liffey, these six life-size bronzes were designed and cast by the Dublin sculptor Rowan Gillespie to mark the 150th anniversary of the worst year of the Great Famine (1845–49), or Black ’47 as it is sometimes known. Over the course of the famine more than a million people died of starvation and another million and a half emigrated, while the British government adopted a laissezfaire approach and continued to export food from Ireland around the world.

Radio Éireann is established. 1938 Douglas Hyde becomes Ireland’s first President and takes occupancy of the former viceregal lodge in Phoenix Park, now known as Áras an Uachtaráin. 1948 A coalition government led by the Fine Gael party passes the Republic of Ireland Act, establishing the country as a republic from the following year. 1953 The central bus station Busáras is constructed, becoming the capital’s first Modernist building. 1966 Republicans blow up Nelson’s Column on O’Connell Street in commemoration of the fiftieth anniversary of the Easter Rising. 1972 Rioters attack and burn down the British Embassy in Dublin in protest at the shooting dead of thirteen civilians by British troops in Derry on “Bloody Sunday”. 1974 As the Troubles in Northern Ireland escalate, Loyalists detonate car-bombs in Dublin, killing 26 people. 1976 14-year-old drummer Larry Mullen forms a band at his Clontarf school which will go through various changes of name, from Feedback to The Hype, before finally settling upon U2, releasing its first single in 1979. 1979 Pope John Paul II visits Ireland and celebrates Mass with a congregation of more than a million people in Phoenix Park. 1990s After a decade of recession, Ireland’s economy enjoys an upswing, giving rise to the nickname “Celtic Tiger”. The city sees the beginnings of a huge building boom, the most notable change being the redevelopment of Temple Bar. 1991 Mary Robinson becomes Ireland’s first woman president. 1994 The Eurovision Song Contest, staged in Dublin, includes a seven-minute showstopper fusion of traditional dance and contemporary music, spawning the full-length show Riverdance, which becomes an international phenomenon. 2000s Irish political life is racked by a series of scandals involving financial corruption at the highest level.


pages: 1,309 words: 300,991

Vanished Kingdoms: The Rise and Fall of States and Nations by Norman Davies

anti-communist, Berlin Wall, British Empire, Celtic Tiger, Corn Laws, en.wikipedia.org, energy security, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, labour mobility, land tenure, mass immigration, Mikhail Gorbachev, oil rush, oil shale / tar sands, Red Clydeside, Ronald Reagan, Skype, special economic zone, trade route, urban renewal, WikiLeaks

The behaviour seemed all the more reprehensible since it coincided with the inquiries and reports that comprehensively exposed the shortcomings of the Catholic Church. Eventually a leading Irish commentator, foreseeing disaster, described his country as ‘A Ship of Fools’.96 Damien Dempsey was the songster who set the national mood to music: Greedy, greedy, greedy, greedy, greedy So greedy, greedy, greedy, greedy, greedy Now they say the Celtic Tiger in my home town Brings jewels and crowns, picks you up off the ground But the Celtic Tiger does two things It brings you good luck or it eats you for its supper. It’s the tale of the two cities on the shamrock shore. Please Sir can I have some more, Cos if you are poor you’ll be eaten for sure. And that’s how I know the poor have more taste than the rich And that’s how I know the poor have more taste than the rich. Hear the Tiger roar – I want more Hear the Tiger roar, I want more, more, more.97 The Republic’s distress coincided with the North’s convalescence.

‘A Day of Justice Dawning’ or ‘The Winds are Singing Freedom’, by Terry Makem, http://merryploughboys.com/cd-lyrics/3_01twasf.html (2009). 95. ‘A Nation Once Again’, composed by Thomas Osborne Davis (1814–45), http://en.wikipedia.org/wiki/a_nation_once_again (2009); see also http://www.bbc.co.uk/worldservice/us/features/topten (2009), with audio recording by the Wolfe Tones. 96. Fintan O’Toole, Ship of Fools: How Stupidity and Corruption Killed the Celtic Tiger (London, 2009). 97. Damien Dempsey, ‘Celtic Tiger’, http://www.justsomelyrics.com/1511874 (2011). 98. Michael Cox et al., A Farewell to Arms: Beyond the Good Friday Agreement, 2nd edn. (Manchester, 2006). 99. Mary MacAleese, ‘Changing History’, Longford Lecture, 23 November 2007, quoted Margaret Macmillan, The Uses and Abuses of History (London, 2009), p. 72. 100. Ian Paisley, 8 May 2007, www.allgreatquotes.com. 101.

Thanks to investment in education and modern technology, and to membership of the European Union, remarkable advances took place from the 1960s onwards; Ireland’s GDP per capita rose decade by decade until at the beginning of the twenty-first century it overtook that of the United Kingdom. For a time, Irish citizens enjoyed the top ranking in the Worldwide Quality of Life Index.7 Not until the global recession of 2008–9 did the ‘Celtic Tiger’ (so named in 1994) stumble, and with it the political elite’s reputation. Out of Prince Albert’s hearing, the talk in Dublin was of ineffectual leadership, and of ‘a culture of clientilism, cronyism and corruption’. The official Irish version of Irish history is built round a three-part scheme of periodization. Two or three millennia of the ‘Era of Ancient Celtic Freedom’, stretching from prehistory to the twelfth century AD, are followed by the ‘Era of Foreign Domination’ (1171–1916) and then by the ‘Era of National Liberation’, which is still in progress.


pages: 267 words: 74,296

Unhappy Union: How the Euro Crisis - and Europe - Can Be Fixed by John Peet, Anton La Guardia, The Economist

bank run, banking crisis, Berlin Wall, Bretton Woods, business cycle, capital controls, Celtic Tiger, central bank independence, centre right, collapse of Lehman Brothers, credit crunch, Credit Default Swap, debt deflation, Doha Development Round, eurozone crisis, Fall of the Berlin Wall, fixed income, Flash crash, illegal immigration, labour market flexibility, labour mobility, light touch regulation, market fundamentalism, moral hazard, Northern Rock, oil shock, open economy, pension reform, price stability, quantitative easing, special drawing rights, supply-chain management, The Great Moderation, too big to fail, transaction costs, éminence grise

Too few questioned whether buoyant tax revenues might not just be a windfall from a property bubble. When it burst, they would collapse and spending would shoot up to pay for unemployed construction workers. Ireland’s net exports were booming even as it was overheating, but Spain’s were shrinking. Over two decades, Ireland had gone from being the poorest EU country to being one of the richest. But while the Celtic Tiger put on real muscle in the early years, boosting productivity by turning itself into an export base for multinationals, later it just gorged itself on cheap credit. Among the laggards, Germany’s sickliness masked a process of protracted reform, especially Gerhard Schröder’s Agenda 2010 labour-market and welfare changes, pushed through after 2003. Germany was still digesting the cost of absorbing the former East Germany, and had entered the euro with an overvalued currency.

., Making the European Monetary Union, Harvard University Press, 2012 Legrain, P., European Spring: Why Our Economics and Politics are in a Mess – and How to Put Them Right, CB Books (Amazon), 2014 Marsh, D., Europe’s Deadlock, Yale University Press, 2013 Marsh, D., The Euro: the Battle for a New Global Currency, Yale University Press, updated 2011 O’Toole, F., Ship of Fools: How Stupidity and Corruption Sank the Celtic Tiger, Faber and Faber, 2009 Pisani-Ferry, J., The Euro Crisis and its Aftermath, Oxford University Press, 2014 Panagiotarea, E., Greece in the Euro, ECPR Press, 2013 Pryce, V., Greekonomics, Biteback, updated 2013 Soros, G., The Tragedy of the European Union, Public Affairs, 2014 Tsoukalis, L. and Emmanouilidis, J. (eds), The Delphic Oracle on Europe, Oxford University Press, 2011 Tsoukalis, L., The Unhappy State of the European Union, Policy Network, March 2014 Van Middelaar, L., The Passage to Europe, Yale University Press, 2013 Appendix 4 How The Economist saw it at the time May 1st–7th 2010 July 10th–16th 2010 November 20th–26th 2010 December 4th–10th 2010 January 15th–21st 2011 March 12th-18th 2011 June 11th-17th 2011 June 25th-July 1st 2011 October 29th-November 4th 2011 November 5th-11th 2011 November 12th-18th 2011 November 26th-December 2nd 2011 February 18th–24th 2012 March 31st–April 6th 2012 May 19th–25th 2012 May 26th-June 1st 2012 July 28th-August 3rd 2012 August 11th-17th 2012 November 17th-23rd 2012 March 23rd-29th 2013 May 25th–31st 2013 September 14th–20th 2013 October 26th-November 1st 2013 January 4th-10th 2014 Index 1974–75 global recession 10 A accession treaties 112 accountability 125–129, 162 Alliance of Liberals and Democrats for Europe (ALDE) 130–131 Alogoskoufis, George 42 Amsterdam treaty 111–112, 193 Anastasiades, Nicos 2, 86–88 Anglo Irish Bank 53 Ansip, Anders 104 Arab spring 145–146 Argentina 5, 50 Armenia 149 Ashton, Catherine 28, 43, 144 Asmussen, Jörg 51, 82 Austria 111, 127 influence 108 interest rates 93 Azerbaijan 149 Aznar, José Maria 17 B Bagehot, Walter 9 bail-in rules 83, 90–91, 165 see also Cyprus bail-outs national approval requirement 127 no-bail-out rule 45, 162, 163–165 Balkans war 143 Bank of Cyprus 86–87 Bank of England 47, 157 bank recapitalisation 58–59, 74–77, 84 Bankia 72 banking sector characteristics 35 banking supervision see financial supervision banking union 23, 74–75, 77, 83–85, 90–92, 106, 165, 195 see also deposit guarantees; financial supervision Barnier, Michel 41, 138 Barroso, José Manuel early days of crisis 41 European Commission 97, 98, 141, 172 Greece 3, 78 Italy 63 Batista, Paulo Nogueira 46 Belarus 149 Belgium 17, 100, 127 Berlusconi, Silvio euro currency view 151 Italy’s failure to reform 59, 60, 62–63 People of Freedom party (PdL) 107 resignation 64 Black Wednesday 16–17 Blair, Tony 28, 112 BNP Paribas 40 Bolkestein directive 137 bond yields 37, 38, 61, 70, 89 bond spreads 37, 42, 70, 80, 88 Bootle, Roger 1 Bowles, Sharon 98, 129 Brandt, Willy 10 Bretton Woods 9–10 Brown, Gordon 24, 41, 48, 102, 112, 144 Bruegel think-tank 35, 74, 163, 166 budget deficits Maastricht ceiling 15 timescales for meeting targets 88–89 see also stability and growth pact budgets annual, European 21, 27, 118 central 13, 168–170 federal 164, 168 fiscal capacity 84 Bulgaria 108, 113, 124, 126, 147 Bundesbank 16, 23, 157 C Cameron, David 14, 17, 64–65, 117–119, 132, 140 Cannes G20 summit (2011) 62–64 Capital Economics 1 Cassis de Dijon judgment 21 Catalonia 178 CEBS (Committee of European Banking Supervisors) 35 central banks, national 22–23 Centre for European Policy Studies 34 Centre for European Reform 34 CFSP (Common Foreign and Security Policy) 142, 144 China 33, 139, 167 Chirac, Jacques 18, 23, 100, 127 Christofias, Demetris 86 Churchill, Winston 7, 115, 161 Clark, Christopher 178 climate change 135–136 Clinton, Hillary 144 Cockfield, Arthur 13 Committee of European Banking Supervisors (CEBS) 35 Committee of Permanent Representatives (COREPER) 20 Committee of Regions 21 common fisheries policy 100, 138 Common Foreign and Security Policy (CFSP) 142, 144 community method 19, 21–22 Competitiveness Pact see Euro Plus Pact complacency pre-crisis 36–37 Constâncio, Vítor 34 constitution proposals 26–27 convergence criteria 14–16, 41, 112, 193 COREPER (Committee of Permanent Representatives) 20 COSAC (Conference of Community and European Affairs Committees of Parliaments of the European Union) 133 Council of Ministers 20, 121, 130 Council of the European Union see Council of Ministers Court of Auditors 21 Court of First Instance 21 Crafts, Nicholas 9 credit ratings (countries) 69, 77–78, 108 Crimea 150 Croatia 113, 143, 147 current-account (im)balances 25, 31, 88–89, 167–168 customs union, German 9 Cyprus accession 147 bail-out 2, 85–88 entry to euro 112 finances pre-crisis 30 Cyprus Popular Bank (Laiki) 86–88 Czech Republic 113, 118 D Dayton agreement 143 de Gaulle, Charles 9, 22, 96 de Larosière, Jacques 41, 74 Deauville meeting between Sarkozy and Merkel 51–52, 102 debt mutualisation 74, 103, 166–167 defence and security 8, 143, 145 deflation 92 Delors, Jacques 11, 37, 97 Delpla, Jacques 167 democratic accountability 125–129, 162 democratic deficit 121, 129–132, 162–163, 171–172 Denmark European participation 112 justice and home affairs (JHA) 111, 139 ministerial accountability 133 opt-outs 139 referendums 16, 27, 132 shadowing of euro 113 single currency opt-out 110, 115 UK sympathies 119 deposit guarantees 5, 40–41, 74, 77, 91 Deutschmark 10, 12, 16 devaluation, internal 31, 65–66 Dexia 72 Dijsselbloem, Jeroen 24, 87 double majority voting 20, 114 Draghi, Mario 156 appointment as ECB president 23, 68 crisis-management team 2 demand for fiscal compact 64 Long Term Refinancing Operations (LTRO) 68–70 outright monetary transactions (OMT) 78–81 pressure on Berlusconi 59 “whatever it takes” London speech 79 Duisenberg, Wim 23 E e-commerce 137 east–west divide 108 ECB (European Central Bank) bond-buying 47–49, 59–60 crisis-management planning 2, 4 delays 156 European System of Central Banks 22 liquidity provision 40–42, 68–70 outright monetary transactions (OMT) 79–81, 164, 175–176 role and function 22–24, 39–40, 170–171 supervision 6, 99, 175, 195 troika membership 160–161 EcoFin meetings 20, 114 Economic and Financial Committee 20 economic and monetary union (EMU) 11, 112 Economic and Social Committee 21 economic imbalances 30–34 The Economist on ECB responsibilities 15 fictitious memorandum to Angela Merkel 1 ECSC (European Coal and Steel Community) 7–8 EEAS (European External Action Service) 142, 144 EEC (European Economic Community) 8 EFSF (European Financial Stability Facility) 26, 48, 55, 60–61, 81, 194 see also ESM (European Stability Mechanism) EFSM (European Financial Stabilisation Mechanism) 48 Eiffel group 120, 129, 164 elections, European 121, 129–130 Elysée treaty 100 emissions-trading scheme (ETS) 135–136 EMS (European Monetary System) creation of 11 exchange-rate mechanism 16 membership 15 EMU (economic and monetary union) 11, 112 EMU@10 36 energy policies 136 enhanced co-operation 111 enlargement 33, 146–147 environment summits 135 Erdogan, Recep Tayyip 148 ESM (European Stability Mechanism) 194 establishment 26, 55, 80–81 operations 58, 75, 76, 91 Estonia 65, 108 ETS (emissions-trading scheme) 135–136 EU 2020 strategy 137 euro break-up contingency plans 2–3 convergence criteria 14–16, 41, 112, 193 crash danger 47–48 introduction of 4, 18 notes and coins 18 special circumstances 3–4 euro crisis effect on world influence 143–146 errors 155–161 focus of attention 135–141 Euro Plus Pact 55, 195 euro zone 4 economic dangers 175–178 increasing significance of institutions 113–114, 120 performance compared with US 154–155 political dangers 175–178 political integration 125 trust 173 Eurobonds 54, 59, 74, 166–167 Eurogroup of finance ministers 24, 114 European Banking Authority 114, 195 European Central Bank (ECB) bond-buying 47–49, 59–60 crisis-management planning 2, 4 delays 156 European System of Central Banks 22 liquidity provision 40–42, 68–70 outright monetary transactions (OMT) 79–81, 164, 175–176 role and function 22–24, 39–40, 170–171 supervision 6, 99, 175, 195 troika membership 160–161 European Coal and Steel Community (ECSC) 7–8 European Commission commissioners 19, 172 errors 160 future direction 171–172 influence and power 96–97, 99, 119, 125 intrusiveness 127, 140–141 organisation 19 presidency 131, 144 proposals for economic governance 50 European Community 12 European Council 20, 98–99 European Court of Human Rights 21 European Court of Justice 21 European Defence Community 8 European Economic Community (EEC) 8 European External Action Service (EEAS) 142, 144 European Financial Stabilisation Mechanism (EFSM) 48 European Financial Stability Facility (EFSF) 26, 48, 55, 60–61, 81, 194 see also European Stability Mechanism (ESM) European Financial Stability Mechanism 26 see also European Stability Mechanism (ESM) European Investment Bank 21 European Monetary Institute 22 European Monetary System (EMS) creation of 11 exchange-rate mechanism 16 membership 15 European Parliament 20–21, 97–98, 99, 100, 119, 121, 129–132, 171 European People’s Party 117, 127, 130–131 European Political Co-operation 142 European semester 25, 195 European Stability Mechanism (ESM) 194 establishment 26, 55, 80–81 operations 58, 75, 76, 91 European Systemic Risk Board 41 European Union driving forces for monetary union 12–13 expansion 26 historical background 7–12 treaty making 26–28 world influence 140, 142–150 European Union Act (2011) 117, 132 Eurosceptics 13, 123 Finns Party 124 Jobbik 125 League of Catholic Families 125 National Front 124 Party of Freedom (PdL) 124 UK Independence Party (UKIP) 118, 125, 140 excessive deficit procedure 24, 88–89, 194, 195 exchange-rate systems 3, 9–11 exchange rates 164 F Farage, Nigel 98, 118 Federal Deposit Insurance Corporation (FDIC) 77 Federal Reserve (US) 23, 47, 48, 157 federalism 19, 110, 116, 161–165, 168–170, 177–178 financial integration 35–36 financial supervision 195 ECB 6, 99, 175, 195 Jacques de Larosière proposals 41 national 23, 35 single supervisor 76–77, 83–84, 90 Finland accession 26, 111 Finns Party 124 influence 108 ministerial accountability 133 fiscal capacity 84 fiscal compact treaty 25–26, 64–65, 118, 194–195 fiscal policy, focus on 30–31 Five Star Movement 124, 126 fixed exchange-rate systems 3, 9–10 Foot, Michael 116 forecasts, growth 92 foreign policy 142–143 Fouchet plan 22 France credit rating 69, 103 current-account balance 168 EMS exchange-rate mechanism 16 excessive deficit procedure 89 GDP growth 32 and Greece 44 influence 100–104, 142–143 Maastricht deal 12, 16 public debt 159 public opinion of EU 123, 124 single currency views 16–17 unemployment 159 veto of UK entry 115 vote to block European Defence Community 8 freedoms of movement 8, 13 G Gaulle, Charles de 9, 22, 96 Gazprom 136 GDP growth 32 Georgia 149 Germany 2013 elections 90, 106, 125 bond yields 37, 89 Bundesbank 16, 23, 157 constitutional (Karlsruhe) court 45, 95, 128, 158 credit rating 69, 77–78 crisis management errors 155–156 current-account surplus 89, 105, 167–168 demands post Greek bail-out 50–51 economic strengths and weaknesses 14 GDP growth 32 and Greece 44 influence 100–106 Maastricht deal 12, 15–16 national control and accountability 128, 133 parliamentary seats 100 political parties 93, 125 public debt 159 public opinion of EU 123 unemployment 159 unification 16 Zollverein 9 Giscard d’Estaing, Valéry 11, 18, 26, 100 Glienicker group 163, 170 gold standard 9–10 Golden Dawn 124 government spending (worldwide) 4 governments, insolvency of 50 great moderation 31 Greece 2012 election 73, 126 bail-out deal 45–47, 56–58, 65–67, 70, 158 bond yields 37, 61–62 current-account balance 168 debt crisis 42–45 euro membership 18, 112, 115 finances post bail-out 93–94 finances pre-crisis 30, 71 GDP growth 32 potential euro exit 1–5, 81–83 public debt 159, 166 public opinion of EU and euro 113, 123, 124 referendum on bail-out 2, 61–62 unemployment 159 Gros, Daniel 34 H Hague, William 151 Haider, Jörg 127 Hamilton, Alexander 162, 167 Heath, Edward 10, 116 Heisbourg, François 104 Hollande, François 73–74, 89, 103–104, 127 proposed reforms 177 Hungary 41, 113, 126, 147 Hypo Real Estate 41 I Iceland 53, 147 ideological differences 114–115 IKB Deutsche Industriebank 40 immigration 139–140, 146, 147 impossible trinity 13 inter-governmentalism 96, 128, 174 interest rates 93, 164 internal devaluation 31, 65–66 International Monetary Fund (IMF) banking union 74 crisis-management planning 2, 4–5 Cyprus 86–87 errors 160–161 euro zone support 48 Greece 44–46, 56–57, 66, 83, 93–95, 160 Latvia 65 rainy-day funds 169–170 special drawing rights (SDR) 63 Iraq 143 Ireland 89, 110 bail-out 53–54, 56, 57, 89 bank crises 40, 71 bond yields 37, 47, 53, 61, 89 current-account balance 168 finances pre-crisis 30 GDP growth 32 influence 107 opt-outs 111, 139 public debt 159, 166 public opinion of EU 123 referendums 27, 28, 132 unemployment 159 Italy 2013 elections 107, 124, 126 bond yields 37, 61, 89 convergence criteria 17 current-account balance 168 danger of collapse 59 EMS exchange-rate mechanism 16 excessive deficit procedure 89 GDP growth 32 influence 100, 104, 107 interest rates 93 public debt 159, 166 public opinion of EU 123 single currency views 17 unemployment 159 J Jenkins, Roy 11 Jobbik 125 Juncker, Jean-Claude 98, 104, 177 candidate for Commission Presidency 131 EU 2005 budget crisis 28 Eurobonds 54 Eurogroup president 24 justice and home affairs (JHA) 139 K Karamanlis, Kostas 42 Karlsruhe constitutional court 45, 95, 128, 158 Kauder, Volker 105 Kerry, John 144 Kohl, Helmut 12, 18, 100 L labour markets 14, 33–34 Lagarde, Christine 51, 58, 62, 92 Laiki 86–88 Lamers, Karl 111 Lamont, Norman 17 Larosière, Jacques de 41, 74 Latin Monetary Union 9 Latvia 41, 65, 67, 88, 108 Lawson, Nigel 16 League of Catholic Families 125 legislative path 21–22 Lehman Brothers, ECB reaction to collapse 4 Letta, Enrico 107–108 Libya 143, 145 Lipsky, John 57 Lisbon treaty 28, 45, 194 foreign policy 142 institutions 20, 131 justice and home affairs (JHA) 139 subsidiarity 133 voting 20, 114 Lithuania 88, 113, 153 Long Term Refinancing Operations (LTRO) 68–70, 72 Luxembourg 77–78, 100, 108, 169 Luxembourg compromise 97 M Maastricht treaty 11–12, 15, 22, 142, 193 opt-outs and referendums 16, 110–111 MacDougall report (1977) 13, 169 Major, John 12, 111, 116 Malta 100, 112 Maroni, Roberto 34 Mayer, Thomas 1 McCreevy, Charlie 41 MEPs 20–21, 130 Merkel, Angela 2013 re-election 90 banking union 74–77 Cannes G20 summit (2011) 63–64 crisis response 40–41, 44 European constitution 28 fictitious memorandum to 1 future direction 178 power and influence 89, 102–106, 153 Sarkozy collaboration 60, 61–62, 102–103 support for Cyprus 86 support for Greece 5, 45, 49–52, 81–82 support for UK 118–119 union method 22, 128 voter support 125 Messina conference 8, 115 migration 139–140, 146, 147 Miliband, David 144 Mitterrand, François 11, 12, 18, 100 Mody, Ashoka 163 Moldova 149 Monnet, Jean 8, 152 Montebourg, Arnaud 104 Montenegro 147 Monti, Mario 64 influence 70, 75–76, 107 A New Strategy for the Single Market (2010) 137–138 Morocco 146 Morrison, Herbert 8 Morsi, Muhammad 145 Moscovici, Pierre 75 multi-annual financial framework 21, 27, 118 Mundell, Robert 12–13 mutualisation of debt 74, 103, 166–167 N national budgets 89, 125 National Front 124 NATO defence spending targets 145 European security 8 membership 110 Netherlands credit rating 77–78 excessive deficit procedure 89 influence 100, 108 ministerial accountability 133 UK sympathies 119 Nice treaty 194 no-bail-out rule 45, 162, 163–165 north–south divide 33–34, 108 Northern Rock 40 notes and coins 18 Nouy, Danièle 90 Nuland, Victoria 149 O Obama, Barack 63 official sector involvement (OSI) 83 OMT (outright monetary transactions) 79–81, 164, 175–176 Germany’s constitutional court judgment 95, 128 optimal currency-area theory 12–13, 14–15 Orban, Viktor 126 Osborne, George 117, 119 OSI (official sector involvement) 83 outright monetary transactions (OMT) 79–81, 164, 175–176 Germany’s constitutional court judgment 95, 128 P Pact for the Euro see Euro Plus Pact Papaconstantinou, George 43 Papademos, Lucas 64 Papandreou, George 56, 60 election 43 Greek referendum 61–62 resignation 2, 64 Party of Freedom 124 Poland 109, 113 Policy Exchange 1 political parties 124–125, 139–140 political union 10, 12, 133–134 Pompidou, Georges 10 Poos, Jacques 143 Portugal 110 bail-out 54, 57, 89–90 bond yields 37, 47, 53, 61, 89 public opinion of EU and euro 113 power, balance of 99–101 price stability goal of ECB 23 private-sector involvement (PSI) in debt restructuring 51–52 Prodi, Romano 17, 25, 97 Progressive Alliance of Socialists and Democrats (S&D) 130–131 public debt 15, 158–159 see also sovereign debt public opinion of EU and euro 121–124 Putin, Vladimir 149–150 Q qualified-majority voting 13, 20, 99, 121 negative qualified-majority voting 25, 195 quantitative easing (QE) 47, 15 R Rajoy, Mariano 70, 75–76, 127 recapitalisation, bank 58–59, 74–77, 84 redenomination 3–4, 153–154, 175 Reding, Viviane 139 referendums 27, 28, 121–122, 132 REFIT initiative 172 Regling, Klaus 26 Renzi, Matteo 107–108 rescue fund see European Stability Mechanism (ESM) resolution mechanism 90–91, 165, 195 single resolution mechanism (SRM) 195 single supervisory mechanism (SSM) 195 Romania 41, 108, 113, 124, 126, 147 Rome treaty 8, 97, 110, 193 Rösler, Philipp 78 Rueff, Jacques 9 Rumsfeld, Donald 143 Russia, influence on Ukraine 149–150 Rutte, Mark 77 S Samaras, Antonis 2, 78, 82, 93–94 Santer, Jacques 97 Sarkozy, Nicolas crisis response 40–41, 44 economic governance 49–50 European constitution 28 LTROs and the Sarkozy trade 69 Merkel collaboration 51–52, 60, 61–62, 102–103 Schäuble, Wolfgang 62, 75, 84, 90–91, 106, 111, 154 Schengen Agreement 110, 111–112 Schmidt, Helmut 11, 100 Schröder, Gerhard 18, 101, 127 Schulz, Martin 131 Schuman Day 8 Schuman, Robert 7–8 Scotland 112, 178 SDR (special drawing rights) 63 Securities Market Programme (SMP) 48, 79 services directive 34 Shafik, Nemat 65 Sikorski, Radek 109 Simitis, Costas 18 Simms, Brendan 179 single currency benefits 152 club within a club 112 driving forces 12–14 importance of 113 vision for 9 see also euro Single European Act 13, 193 single market 4, 137–138, 174–175 Sinn, Hans-Werner 101 six-pack 25, 50, 195 Slovakia 112 adoption of euro 41 influence 108 Slovenia 88–89, 112 influence 108 SMP (Securities Market Programme) 48, 79 snake in the tunnel 10 Solana, Javier 142 sovereign debt 165–166 see also public debt Spain 110 bail-out 70–73, 89 bank recapitalisation 84 bond yields 37, 89 CDS premiums 72 current-account balance 168 danger of collapse 59 excessive deficit procedure 89 finances pre-crisis 30 GDP growth 32 influence 107 public debt 159 public opinion of EU 123, 124 single currency views 17 unemployment 159 special drawing rights (SDR) 63 stability and growth pact 18, 24, 29, 50–51, 127, 194 Stark, Jürgen 59, 106 Steinbrück, Peer 43 Strauss-Kahn, Dominique 24, 44, 57 stress tests, bank 72, 175 subsidiarity 133, 141 Sweden 109, 111, 112 euro opt-out 18, 115 UK sympathies 119 Syria 145 Syriza 124 T Target II 157 Thatcher, Margaret 27, 110, 116 third energy package 136 Tilford, Simon 34 Tindemans, Leo 111 trade policy 138 Transatlantic Trade and Investment Partnership (TTIP) 138–139 treaty making and change 26–27, 173–174 Treaty of Amsterdam 111–112, 193 Treaty of Lisbon 28, 45, 194 foreign policy 142 institutions 20, 131 justice and home affairs (JHA) 139 subsidiarity 133 voting 20, 114 Treaty of Nice 194 Treaty of Rome 8, 97, 110, 193 Treaty on European Union (Maastricht treaty) 11–12, 15, 22, 142, 193 opt-outs and referendums 16, 110–111 Treaty on Stability, Co-ordination and Governance (TSCG) see fiscal compact treaty Tremonti, Giulio 54, 60 Trichet, Jean-Claude 151, 156 bond-buying 47–48, 52–53 crisis-management planning 2 early warnings 39–40 ECB president 23 IMF 44 Italy 59 True Finns 124 Turkey 132, 147, 148 Tusk, Donald 109, 114 two-pack 25, 89, 195 U UK Independence Party (UKIP) 118, 125, 140 Ukraine 149–150, 179–180 unemployment 158–159, 170 union method 19, 22 United Kingdom current-account balance 168 economic strengths and weaknesses 14 EMS exchange-rate mechanism 16 euro crisis reaction 117–118 euro membership 112 European budget contribution 27–28 European involvement 8, 10, 12, 115–119 future status 174–175 influence 100–101, 106, 109, 142–143 initial application to join EEC 9 opt-outs 110–111, 139 public opinion of EU 123 single currency views 17 United Left party 124 United States abandonment of gold standard 10 federalism model 177 foreign policy 143 performance compared with euro zone 154–155 Urpilainen, Jutta 77 V Van Gend en Loos v Nederlandse Administratie der Belastingen (1963) 21 Van Rompuy, Herman 98 crisis-management planning 3 Cyprus 87 European Council presidency 20, 28 Italy 63 roadmap for integration 74–75, 84, 173 support for Greece 43–45 Venizelos, Evangelos 57, 62 Verhofstadt, Guy 131 Véron, Nicolas 35 Vilnius summit 149 von Weizsäcker, Jakob 166 W Waigel, Theo 17–18 Wall Street flash crash 47 Weber, Axel 49, 56, 106 Weidmann, Jens 40, 80, 82 Weizsäcker, Jakob von 166 Werner report (1971) 10 Wilson, Harold 116 Wolfson Prize 1 World Bank 33 World Trade Organisation 138–139 Y Yanukovych, Viktor 149 Z Zapatero, José Luis Rodríguez 59, 62 Zollverein 9 PublicAffairs is a publishing house founded in 1997.


pages: 352 words: 90,622

Thieves of State: Why Corruption Threatens Global Security by Sarah Chayes

Celtic Tiger, colonial rule, crony capitalism, drone strike, failed state, income inequality, microcredit, offshore financial centre, plutocrats, Plutocrats, structural adjustment programs, trade route, ultimatum game, WikiLeaks, winner-take-all economy, young professional

As was devastatingly chronicled by Fintan O’Toole in his 2010 Ship of Fools, Ireland’s economy was largely taken over by the 1990s by a kleptocratic network that wove together public officials, top banking executives, and real estate developers. The initial result was a country that seemed to shake its historical demons of poverty and backwardness to become a global example of prosperity, fueled by low taxes, low wages, a hyperactive financial services industry, debt, and a property boom. Growth rates hovered above 7 percent. Ireland was hailed as a “Celtic Tiger.” Until it imploded. In 2008 the Irish economy collapsed. Ghosts of the nineteenth-century Great Hunger seemed to awaken, to haunt anew the acres of abandoned houses that disfigured the moors, their doors creaking in a bitter wind, while thousands of Irish took the road of exile, once again, to try to earn their keep abroad. O’Toole emphasizes the impunity that Irish political wrongdoers enjoyed during these years, and banking regulators’ narrow focus on the level of assets that financial institutions could declare on paper as counterweight to their obligations.

The rising wave of repression against local civil society organizations and against foreign efforts to support them is highlighted in Thomas Carothers and Saskia Brechenmacher, Closing Space: Democracy and Human Rights Support Under Fire (Washington, D.C.: Carnegie Endowment for International Peace, 2014). Epilogue: Self-Reflection 1. Fintan O’Toole, Ship of Fools: How Stupidity and Corruption Sank the Celtic Tiger (New York: Public Affairs, 2010), p. 183. 2. Ibid., p. 217. 3. Ibid., p. 221. 4. “Iceland: Cracks in the Crust,” Economist, December 11, 2008. 5. Sarah Lyall, “Smokestacks in a White Wilderness Divide Iceland,” New York Times, February 4, 2007. 6. Daniel Chartier, The End of Iceland’s Innocence (Ottawa: University of Ottawa Press, 2011); and Roger Boyes, Meltdown Iceland (New York: Bloomsbury, 2009). 7.


pages: 376 words: 109,092

Paper Promises by Philip Coggan

accounting loophole / creative accounting, activist fund / activist shareholder / activist investor, balance sheet recession, bank run, banking crisis, barriers to entry, Berlin Wall, Bernie Madoff, Black Swan, Bretton Woods, British Empire, business cycle, call centre, capital controls, Carmen Reinhart, carried interest, Celtic Tiger, central bank independence, collapse of Lehman Brothers, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, debt deflation, delayed gratification, diversified portfolio, eurozone crisis, Fall of the Berlin Wall, falling living standards, fear of failure, financial innovation, financial repression, fixed income, floating exchange rates, full employment, German hyperinflation, global reserve currency, hiring and firing, Hyman Minsky, income inequality, inflation targeting, Isaac Newton, John Meriwether, joint-stock company, Kenneth Rogoff, Kickstarter, labour market flexibility, light touch regulation, Long Term Capital Management, manufacturing employment, market bubble, market clearing, Martin Wolf, money market fund, money: store of value / unit of account / medium of exchange, moral hazard, mortgage debt, Myron Scholes, negative equity, Nick Leeson, Northern Rock, oil shale / tar sands, paradox of thrift, peak oil, pension reform, plutocrats, Plutocrats, Ponzi scheme, price stability, principal–agent problem, purchasing power parity, quantitative easing, QWERTY keyboard, railway mania, regulatory arbitrage, reserve currency, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, short selling, South Sea Bubble, sovereign wealth fund, special drawing rights, The Chicago School, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Wealth of Nations by Adam Smith, time value of money, too big to fail, trade route, tulip mania, value at risk, Washington Consensus, women in the workforce, zero-sum game

The Greek economy was revealed to be dysfunctional. Ireland entered the crisis in a good degree of fiscal health; its debt-to-GDP ratio in 2007 was just 25 per cent. Three years later, it was 98 per cent, thanks to the government’s commitment to guarantee the deposits (and senior bonds) of the banking sector. The bank sector was recovering from a lending spree, fuelled by the success of what was known in the 1990s as the ‘Celtic tiger’ economy. Ireland’s credit boom was in part caused by euro-zone membership. The European Central Bank sets interest rates for the region on the basis of average conditions. Inevitably, rates will be too low for some countries and too high for others. Irish GDP grew, in real terms, by 6.2% in 2005, 5.4% in 2006 and 6% in 2007; over the same three years, German GDP grew by 0.8%, 3.2% and 2.5% respectively.

Index AAA Status of US Adams, Douglas Adams, John Addison, Lord Adenauer, Konrad adjustable rate mortgages adulterating coins affluent society Afghanistan ageing populations agrarian revolution Ahamed, Liaquat AIG air miles Alaska Amazon.com Angell, Norman Anglo Irish Bank annuities Argentina Aristophanes Arkansas Asian crisis of 1997 – 8 asset prices assignats Athens Austen, Jane austerity Austria Austrian school Austro-Hungarian empire Aztecs B&Q baby boomers Babylon Bagehot, Walter bailouts balanced budget Baldwin II, King of Jerusalem Balfour, Arthur Bancor Bank for International Settlements bank notes Bank of England bank reserves bank runs bankruptcy codes Banque Generale Barclays Capital Baring, Peter Baring Brothers Barnes & Noble barter Basle Accords Bastiat, Frederic BCA Research BCCI bear markets Bear Stearns Beaverbrook, Lord Belgium Belloc, Hillaire Benn, Tony Benn, William Wedgwood Bernanke, Ben Bernholz, Peter bezant Big Bang Big Mac index bills of exchange bimetallism biofuels Bismarck, Otto von Black Death Black Monday black swan Blackstone Blair, Tony Blum, Léon BMW Bodencreditanstalt Bohemia Bolsheviks Bonnet, Georges Bootle, Roger Brady, Nicholas Brady bonds Brazil Bretton Woods system Brodsky, Paul Brooke, Rupert Brown, Gordon Bruning, Heinrich Brutus Bryan, William Jennings bubbles budget deficits budget surplus building societies Buiter, Willem Bundesbank Burns, Arthur Bush, George W. Business Week Butler, Eamonn Calder, Lendol California Callaghan, Jim Calvin, John Canada Canadian Tar Sands capital controls capital economics capital flows capital ratios carried interest carry trade Carville, James Cassano, Joseph Cato Institute Cayne, Jimmy CDU Party ‘Celtic tiger’ central bank reserves Cesarino, Filippo ‘Chapter’ Charlemagne Charles I, King of England cheques/checks chief executive pay Chile China Churchill, Winston civil war (English) civil war (US) Citigroup clearing union Clientilism Clinton, Bill CNBC collateralized debt obligations commerical banks commercial property commodity prices Compagnie D’Occident comparative advantage conduits confederacy Congdon, Tim Congress, US Connally, John Conservative Party Consols Constantine, Emperor of Rome consumer price inflation continental bonds convergence trade convertibility of gold suspended Coolidge, Calvin copper Cottarelli, Carlo Council of Nicea Cowen, Brian cowrie shells Credit Anstalt credit cards credit crisis of 2007 – 8 credit crunch credit default swaps ‘cross of gold’ speech Cunliffe committee Currency Board currency wars Dante Alighieri David Copperfield Davies, Glyn debasing the currency debit cards debt ceiling debt clock debt deflation spiral debt trap debtors vs creditors, battle defaults defined contribution pension deflation Defoe, Daniel Delors, Jacques Democratic convention of 1896 Democratic Party Democratic Republic of Congo demographics denarii Denmark deposit insurance depreciation of currencies derivatives Deutsche Bank Deutschmark devaluation Dickens, Charles Dionysius of Syracuse Dodd – Frank bill dollar, US Dow Jones Industrial Average drachma Duke, Elizabeth Dumas, Charles Duncan, Richard Durst, Seymour Dutch Republic East Germany East Indies companies Economist Edward III, King of England Edwards, Albert efficient-market theory Egypt Eichengreen, Barry electronic money embedded energy energy efficiency estate agents Estates General Ethelred the Unready euro eurobonds eurodollar market European Central Bank European Commission European Financial Stability Facility European Monetary System European Union eurozone Exchange Rate Mechanism, European exorbitant privilege farmers Federal Reserve Federal Reserve Bank of Philadelphia Federalist party fertility rate ‘fiat money’ Fiji final salary pension Financial Services Authority Financial Times Finland First Bank of the United States First World War fiscal policy fiscal union Fisher, Irving fixed exchange rates floating currencies florin Florio, Jim Ford, Gerald Ford, Henry Ford Motor Company Foreign & Colonial Trust foreign direct investment foreign exchange reserves Forni, Lorenzo Forsyte Saga France Francis I, King of France Franco-Prussian War Franklin, Benjamin French Revolution Friedman, Milton Fuld, Dick futures markets Galbraith, John Kenneth Galsworthy, John GATT Gaulle, Charles de Geithner, Tim General Electric General Motors general strike of 1926 Genghis Khan Genoa conference George V, King of England Germany gilts Gladstone, William Glass – Steagall Act Gleneagles summit Glorious Revolution GMO Gokhale, Jagadeesh gold gold exchange standard gold pool gold standard Goldman Sachs goldsmiths Goodhart, Charles Goodhart’s Law Goschen, George Gottschalk, Jan government bonds government debt Graham, Frank Granada Grantham, Jeremy Great Compression Great Depression Great Moderation Great Society Greece Greenspan, Alan Gresham, Sir Thomas Gresham’s Law Gross, Bill G7 nations G20 meeting Guinea Habsburgs Haiti Haldane, Andrew Hamilton, Alexander Hammurabi of Babylon Havenstein, Rudolf von Hayek, Friedrich Heavily Indebted Poor Countries initiative hedge funds Henderson, Arthur Henry VIII, King of England Hien Tsung, Chinese emperor Hitler, Adolf Hoar, George Frisbie Hohenzollern monarchy Holy Roman Empire Homer, Sydney Hoover, Herbert House of Representatives houses Hume, David Hussein, Saddam Hutchinson, Thomas Hyde, H.


pages: 405 words: 109,114

Unfinished Business by Tamim Bayoumi

algorithmic trading, Asian financial crisis, bank run, banking crisis, Basel III, battle of ideas, Ben Bernanke: helicopter money, Berlin Wall, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business cycle, buy and hold, capital controls, Celtic Tiger, central bank independence, collapse of Lehman Brothers, collateralized debt obligation, credit crunch, currency manipulation / currency intervention, currency peg, Doha Development Round, facts on the ground, Fall of the Berlin Wall, financial deregulation, floating exchange rates, full employment, hiring and firing, housing crisis, inflation targeting, Just-in-time delivery, Kenneth Rogoff, liberal capitalism, light touch regulation, London Interbank Offered Rate, Long Term Capital Management, market bubble, Martin Wolf, moral hazard, oil shale / tar sands, oil shock, price stability, prisoner's dilemma, profit maximization, quantitative easing, race to the bottom, random walk, reserve currency, Robert Shiller, Robert Shiller, Rubik’s Cube, savings glut, technology bubble, The Great Moderation, The Myth of the Rational Market, the payments system, The Wisdom of Crowds, too big to fail, trade liberalization, transaction costs, value at risk

In another trend that was destined to continue in the 2000s, the banking systems started to take off in Ireland and the United Kingdom, the two EU countries that adopted “light touch” supervision. In Ireland, this represented an attempt to repeat the earlier successful strategy of using government policy to attract foreign manufacturing multinationals (in that case through lower tax rates), an approach that had turned Ireland from a poor country into the “Celtic tiger”. In the case of banking, the attractions of low taxes were reinforced by a permissive “light touch” approach to supervision. As a result, Ireland’s banking system ballooned from two-and-a-half times the economy in 1997 to an enormous five times the economy by 2002 as foreign banks entered the market. The new business was largely in investment banking, and Ireland’s ratio of commercial loans to assets fell rapidly to 25 percent, the lowest in the Euro area.

., (i) business cycle, (i), (ii), (iii), (iv) California: house price fall, (i) Canada banking system, (i) in Basel Committee, (i) and Louvre Accord, (i) Case Shiller house price index, (i) central banks and effect of inflation, (i), (ii) failure to apologise for crisis, (i) and fiscal expansion, (i) independence, (i), (ii) and inflation targeting, (i) and monetary policy, (i), (ii) and quantitative easing, (i) responsibility for controlling macroeconomic fluctuations, (i) responsibility for delivering low inflation, (i) revive growth and inflation, (i) role, (i) see also European Central Bank Centre for Economic Policy Decisions, (i) Chaebol (South Korea), (i) Charlemagne, Emperor, (i) Chase Manhattan Bank (US bank), (i) Chemical Bank (US bank), (i) China currency depreciation, (i) Euro area trade with, (i) in G20 group, (i) investments in US, (i) joins World Trade Organization, (i), (ii) rise as economic power, (i) Citigroup (US bank), (i), (ii), (iii) assets, (i) banking model, (i) low capital buffer, (i) as national bank, (i) rescued, (i) strongly capitalized, (i) collateralized debt obligations (CDOs), (i), (ii) Collins amendment (US), (i) see also Dodd–Frank Act Commerzbank (German bank), (i), (ii), (iii) Commodity Futures Trading Commission (US), (i) Comptroller of the Currency (US) see Office of the Comptroller of the Currency Congressional Research Service (US), (i) Consolidated Supervision Entities (CSE), (i) Consumer Financial Protection Bureau (US), (i), (ii) Consumer Protection Act (US, 2010), (i) Continental Illinois Bank and Trust Company (US bank) Bank of America acquires, (i) failure (1984), (i), (ii) Copenhagen European leaders summit (1978), (i) copyright, (i) Council of Governors (Committee of Governors of the Central Banks; Europe), (i), (ii) Cox, Christopher, (i) Credit Agricole (French bank), (i), (ii) Credit Suisse First Boston (Swiss/US bank), (i), (ii) Cummings, Christine, (i) currency unions, (i), (ii) see also European Monetary Union Cyprus, (i) dealers see broker-dealers debt flows (international), (i), (ii) debts: repayment, (i) Declaration of Strengthening the Financial System (G20, 2009), (i) Delors, Jacques advocates strong franc, (i) Committee and Report, (i), (ii), (iii), (iv), (v), (vi), (vii), (viii) and common currency, (i) as President of European Commission, (i) Denmark accepts Basel capital rules, (i) and currency fluctuations, (i) invited to join European Economic Community, (i) rejects European Monetary Union, (i), (ii) in Scandinavian monetary union, (i) Depository Institutions Deregulation and Monetary Control Act (US, 1980), (i) deposits: uninsured, (i) derivatives, (i), (ii) Deutsche Bank (German bank) assets reduced, (i) backing, (i) branches abroad, (i) and capital buffers, (i) capital ratios, (i) competes with US major banks, (i) expansion, (i), (ii), (iii), (iv), (v) international scope, (i) power, (i), (ii) under pressure to accept reform, (i) Deutsche mark appreciates against dollar, (i) dominance, (i), (ii) revalued, (i) Dexia (French/Belgian bank), (i), (ii), (iii), (iv), (v) Dodd–Frank Act (US, 2010), (i), (ii), (iii), (iv) Doha round of trade talks (2001), (i) dollar appreciates (early 1980s), (i) devalued, (i) and fixed exchange rate system, (i), (ii) as central currency, (i) oil priced in, (i) value pegged to gold, (i) Draghi, Mario, (i), (ii), (iii) Duisenberg, Wim, (i), (ii) dynamic stochastic general equilibrium models (DSGE models), (i), (ii), (iii), (iv) East Germany: Ostmarks converted to Deutsche marks, (i), (ii) eastern Europe and labor market, (i) trade with Euro area, (i) economic models distort policymaking, (i), (ii) see also dynamic stochastic general equilibrium models ‘Economists’ (Euro area): differences from ‘Monetarists’, (i), (ii), (iii), (iv), (v) efficient market hypothesis, (i), (ii) Eichengreen, Barry, (i) Emergency Home Finance Act (US, 1970), (i) Emminger, Otmar, (i) employment: and fiscal and monetary policy, (i) Euro area (and Europe) accepts Basel 3 framework, (i) bank assets reduced since 2008, (i) bank internal risk models, (i), (ii) bank lending expansion, (i) bank resolution system (2014), (i) banking system expansion and transformation (1985–2002), (i), (ii), (iii) banking system in 2002, (i), (ii) banking system shrinks since 2009, (i) and banking union, (i) banks fund US housing bubble, (i) banks under ECB supervision, (i) banks’ overseas expansion, (i), (ii), (iii) bond yields, (i), (ii) borrowing rates converge, (i) business cycles, (i) capital gains, (i) causes of financial crisis, (i) causes of regional separation, (i) centralized bank regulation and support, (i), (ii), (iii), (iv) core and periphery banks, (i), (ii), (iii) debt breaks, (i) depression, (i) domestic (national) banking, (i) early national banking system (1980), (i) effect of post-crisis changes on banks, (i), (ii) and exchange rate instability, (i) failure to achieve integrated banking, (i) financial reform in, (i) fiscal deficits limited, (i), (ii), (iii) fiscal policies tightened, (i) foreign banks in, (i) foreign trade, (i) growth forecasts, (i) house prices, (i), (ii) inadequate fiscal buffers, (i), (ii) inflation rates, (i) institutional changes, (i) internal exchange rates, (i) investment spending, (i) labor markets and migration, (i) lends to US, (i), (ii) limited support for troubled banks, (i) mega-banks, (i), (ii), (iii), (iv), (v), (vi), (vii), (viii), (ix), (x), (xi) member countries, (i) monetary (currency) union, (i), (ii), (iii), (iv), (v), (vi), (vii) move to banking union, (i), (ii), (iii) move to economic integration, (i) need for area-wide bank support system, (i) and origins of World War I, (i) outflows, (i), (ii) output losses, (i), (ii) overbanked, (i) political divisions, (i) post 2002 financial boom, (i) product market, (i) and proposed leverage ratios, (i) residential spending, (i) resolution fund for insolvent banks, (i) responsibility for macroprudential policies, (i) single currency, (i), (ii), (iii), (iv), (v) spending boom, (i) stock market fall from 2007, (i), (ii) surveillance of members reduced, (i) trade balance, (i) universal bank expansion in US, (i), (ii) unprepared for crisis, (i) Euro (currency) as boost to integrated economy, (i), (ii) introduced (1999), (i), (ii), (iii), (iv) European Banking Authority (EBA), (i) European Central Bank (ECB) agreed by Delors Committee, (i) aided by expansion, (i) and bank supervision, (i), (ii), (iii) committed to low inflation, (i) effect of, (i) financial supervision centralized in, (i) and Greek debt crisis, (i) guiding principles, (i) ignores US financial problems, (i) injects liquidity into markets, (i) Joint Supervisory Team, (i) and Maastricht Treaty, (i) and move to banking union, (i) non-adoption of leverage ratio, (i) policy rate, (i) raises rates, (i) vets European Stability Mechanism, (i) weakness, (i) European Coal and Steel Community, (i) European Commission Brussels location, (i) confederated structure, (i) created, (i) European Capital Adequacy Directive, (i) and European integration, (i) Monetary Committee, (i) plans for integrated banking system, (i) and proposed monetary union, (i), (ii) rules on excessive debts, (i) Second Banking Directive, (i), (ii), (iii), (iv) and Stability and Growth Pact, (i) vets European Stability Mechanism, (i) European Community Council of Ministers (ECOFIN), (i) European Council, (i), (ii) European Currency Unit (ECU), (i), (ii) see also Euro European Economic Community Common Agricultural Policy, (i) currency fluctuations, (i) customs union, (i) fixed exchange rates, (i) formed, (i), (ii) and free movement of capital, (i) see also European Union European Financial Stabilisation Mechanism, (i) see also European Stability Mechanism European Financial Stability Facility, (i) see also European Stability Mechanism European Monetary Cooperation Fund, (i), (ii) European Monetary Fund, (i), (ii) European Monetary Union (EMU) and bank deposit insurance, (i) design, (i) and fall of interest rates, (i), (ii), (iii) future, (i), (ii) and increasing economic integration, (i) initial members, (i) long-term expectation, (i) Maastricht Treaty initiates, (i) positive effects, (i), (ii) principles and flaws, (i) reduces risk premiums, (i) trade and single currency, (i) European Reserve Fund, (i) European Stability Mechanism (ESM), (i), (ii) European System of Central Banks (ESCB), (i), (ii), (iii) European Union alterations at times of distress, (i) and banking regulation, (i), (ii), (iii), (iv), (v) commitment to closer (federated) union, (i) economy contracts, (i) and free movement of goods, services, labor and capital, (i) implements Basel (i), (ii) integrated banking system, (i), (ii) name adopted, (i), (ii) single currency (Euro), (i), (ii) on supervision of investment banking groups, (i) see also European Economic Community Evian, Switzerland, (i) Exchange Rate Mechanism (ERM) Balladur proposes reforms, (i) and Bretton Woods fixed exchange rate system, (i), (ii), (iii), (iv) crisis (1992-3), (i), (ii), (iii), (iv), (v) and Delors Committee, (i), (ii) and German reunification, (i) introduced, (i), (ii), (iii) suffers from speculative attacks, (i) exchange rates determined by private markets, (i) Europe introduces, (i) and floating exchange rate system, (i) and international debt flows, (i) Fannie Mae (government-sponsored enterprise, US) capital buffers, (i) collapses, (i) dominates securitization market, (i) expansion, (i) formed, (i) issues mortgage-backed securities, (i), (ii), (iii) nationalized, (i), (ii) profits squeezed, (i) upper loan limits, (i) Federal Deposit Insurance Corporation (FDIC, US), (i), (ii), (iii), (iv) Federal Deposit Insurance Corporation Improvement Act (US, 1991), (i) Federal Home Loans Banks (US), (i) Federal Reserve Bank see United States Federal Reserve Bank financial crises causes and effects, (i) and regulation reform, (i) see also North Atlantic crisis financial markets see markets (financial) Finançial Services Agency (UK), (i) Financial Stability Board (earlier Forum), (i) Financial Stability Oversight Council (FSOC, US), (i), (ii) Finland escapes crisis, (i) expansion in assets, (i) trade boost, (i) fiscal policy, (i), (ii), (iii), (iv), (v), (vi) FleetBoston Financial Corporation (US bank), (i) Ford, Gerald, (i) Fortis (Belgium/Netherlands bank), (i), (ii) France agricultural lobby, (i) aims for integrated Europe, (i) bank assets, (i) bank branches in other countries, (i) banking expansion, (i), (ii), (iii) banking system (2002), (i) banking system nationalized under President Mitterrand, (i), (ii) close economic ties with Germany, (i) differences with Germany over monetary union, (i), (ii), (iii), (iv), (v), (vi), (vii) and ERM crisis (1992), (i) in European Coal and Steel Community, (i) and European exchange rate system, (i), (ii) favours political control of central bank, (i) and financial crisis, (i) franc fort policy, (i) high inflation, (i), (ii), (iii), (iv) interest rates, (i) internal risk models, (i) leaves and rejoins snake, (i) and investment banking, (i) outflows, (i) reduces fiscal deficit, (i) and single currency, (i), (ii), (iii) status in European Commission, (i) suspends sanctions for high fiscal deficits, (i) Freddie Mac (government-sponsored enterprise, US) capital buffers, (i) dominates securitization market, (i) expansion, (i) mortgage-backed securities, (i), (ii) nationalized, (i), (ii) profitability, (i) upper loan limits, (i) Friedman, Milton, (i) funding corporations, (i) G7 leaders’ summits, (i) Hokkaido Toyako (2008), (i) Venice (1987), (i) G20 group Chengdu (2016), (i) London (2009), (i), (ii) Pittsburg (2009), (i) and fiscal stimulus, (i), (ii) and Financial Stability Board, (i) and policy cooperation, (i), (ii) and reform of banking system, (i) regular meetings, (i) Geithner, Timothy, (i) General Agreement on Tariffs and Trade (GATT), (i) General Motors: share value, (i) Genscher, Hans-Dietrich, (i), (ii) Germany accepts monetary union, (i) aims for integrated Europe, (i) bank assets, (i) bank branches in other countries, (i) banking expansion, (i), (ii), (iii) banking system (2002), (i) controls inflation, (i) debts move to, (i) differences with France over monetary union, (i), (ii), (iii), (iv), (v), (vi), (vii), (viii) dominance in monetary union, (i) Dutch exports to, (i) empire founded (1871), (i) enforces rules, (i) and European exchange rate system, (i) export-led economy, (i) favours independent central bank, (i) favours national bank supervision, (i) and financial crisis, (i) foreign banks in, (i) interest rates, (i), (ii), (iii) internal risk models, (i), (ii) Landesbanken, (i) and ERM crisis, (i) and investment banking, (i) reluctance to support periphery countries, (i) response to financial crisis, (i) reunification following fall of Berlin Wall, (i), (ii), (iii), (iv) and single currency, (i), (ii) small banks, (i) and snake, (i) status in European Commission, (i) strength of currency, (i) supply chain with eastern Europe, (i) suspends sanctions for high fiscal deficits, (i) tax reforms under Louvre Accord, (i) and value of currency, (i) warns of effect of Greek debt, (i) Giscard d’Estaing, Valérie, (i), (ii), (iii), (iv), (v), (vi) Glass–Steagall Act (US, 1933), (i), (ii), (iii), (iv), (v), (vi), (vii), (viii) Glicenstein, Gilles, (i) globalization, (i), (ii), (iii) gold and Long Depression, (i) standard, (i), (ii) and US dollar, (i), (ii) Gold Pool, (i) Goldman Sachs (US investment bank) applies for bank holding company status, (i) assets, (i) becomes regulated bank, (i) competes as investment bank, (i) and competition with European banks, (i) lightly capitalized, (i) as LTCM creditor, (i) as shadow bank, (i) government borrowing, (i) government-sponsored enterprises (GSEs, US), (i), (ii), (iii), (iv), (v), (vi) Graham–Leach–Bliley Act (US, 1999), (i) Great Depression (1930s), (i), (ii), (iii), (iv) great moderation, the, (i), (ii) Greece accepts Basel capital rules, (i) adopts Euro, (i) fall in interest rate, (i) in currency union periphery, (i) economic recovery program, (i) in Euro area, (i) European aid to, (i), (ii) excessive borrowing and debts, (i), (ii), (iii), (iv), (v), (vi), (vii) expansion in assets, (i) financial crisis in, (i), (ii), (iii) fiscal mismanagement, (i) high interest rates, (i) joins Euro area, (i) loans from other countries, (i) product market improvements, (i) reduces fiscal deficit, (i) role of central government, (i) Greenspan, Alan on bank supervision and regulation, (i), (ii) on bank regulation, (i) favors reform of Basel (i), (ii) and predictability of policies, (i) on risks posed by investment banks, (i) The Age of Turbulence, (i) Group of Ten, (i) GSEs, see government-sponsored enterprises Hawaii, (i) HBV (German bank), (i) hedge funds, (i), (ii) helicopter money, (i) Hoechst (corporation), (i) homo economicus, (i), (ii) Hong Kong: and Asian crisis, (i) house purchases and prices, (i), (ii) see also United States of America households: in economic theory, (i) houses: investment value, (i) Housing and Urban Development Act (US, 1968), (i) HSBC (UK bank): in US, (i) Hugo, Victor, (i) human beings fads and crazes, (i) sociability, (i), (ii) IFRB (accounting standards), (i) IKB Deutsche Industriebank AG (German bank), (i), (ii) Illinois (US state): state banking regulations, (i) incomes: stagnation, (i) Indonesia, (i), (ii), (iii) inflation rates, (i), (ii), (iii), (iv), (v), (vi), (vii), (viii) information technology and financial procedures, (i) and investment banks, (i) ING (Netherlands bank) accepts government capital injection, (i) expansion, (i), (ii), (iii), (iv), (v) Institute for International Finance, (i) insurance: and mortgage-backed assets, (i) interest rates and borrowing costs, (i) capped in US, (i), (ii), (iii) and exchange rate, (i) and inflation, (i) reduced to zero, (i) International Monetary Fund (IMF) and perceived anti-China measures, (i) on benefits from open capital markets, (i) and European Stability Mechanism loans, (i) and exchange rate, (i) funds increased, (i) support in Asia crisis, (i) loans available, (i) as model for European Monetary Fund, (i) output gaps, (i) resources fall behind increase in world trade, (i) on size of global economy, (i) international monetary system debt flows, (i) history of crises, (i) International Swaps and Derivatives Association, (i) Intesa Sanpaolo (Italian bank), (i), (ii), (iii) investment banking see also shadow banking benefit from nontraditional cash deposits, (i) funding, (i) and hedge funds, (i) and information technology, (i) regulation, (i) role and conduct, (i) Ireland accepts Basel capital rules, (i) bankers in, (i) banking expansion, (i), (ii) borrowing excesses, (i) as ‘Celtic tiger’, (i) and currency fluctuations, (i) in currency union periphery, (i) in Euro area, (i) European aid to, (i) invited to join European Economic Community, (i) expansion in bank assets, (i) financial crisis in, (i), (ii), (iii) foreign investments in, (i) ‘light touch’ regulation, (i), (ii), (iii), (iv), (v) reduces fiscal deficit, (i) successful effect of reforms, (i) Italy borrowing interest rate, (i) commercial loans, (i) connected firms in, (i) in currency union periphery, (i) debt ratio, (i) in Exchange Rate Mechanism, (i) expansion in bank assets, (i) financial crisis in, (i), (ii) high interest rates, (i) housing boom, (i) inflation rises, (i), (ii) joins European Coal and Steel Community, (i) large outflows, (i) leaves Exchange Rate Mechanism, (i) low growth, (i) and monetary union, (i) product market improvements, (i) reduces fiscal deficit, (i) supports suspension of sanctions for high fiscal deficits, (i) ten-year bonds, (i) see also lira ITT (corporation), (i) Japan banking system, (i) in Basel Committee, (i) controls inflation, (i) debts outflow to, (i), (ii) depression, (i) economic growth, (i) floating exchange rates, (i) and Louvre Accord, (i) Prime Minister Abe’s economic reforms (‘Abenomics’), (i), (ii), (iii) JP Morgan Chase (US bank), (i) acquires Bear Sterns, (i) assets, (i) banking model, (i) as national bank, (i), (ii) Keynes, John Maynard, (i), (ii) King, Mervyn, (i), (ii), (iii) Kohl, Helmut, (i), (ii), (iii), (iv), (v) Kohn, Donald L., (i) labor markets: Euro area versus US, (i) Lamfalussy, Alexandre, (i) Larosière, Jacques de, (i) Latin America: debt crisis, (i), (ii), (iii), (iv), (v), (vi) Latin League (1865), (i), (ii) Lawrence, T.E.


pages: 741 words: 179,454

Extreme Money: Masters of the Universe and the Cult of Risk by Satyajit Das

affirmative action, Albert Einstein, algorithmic trading, Andy Kessler, Asian financial crisis, asset allocation, asset-backed security, bank run, banking crisis, banks create money, Basel III, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Black Swan, Bonfire of the Vanities, bonus culture, Bretton Woods, BRICs, British Empire, business cycle, capital asset pricing model, Carmen Reinhart, carried interest, Celtic Tiger, clean water, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, corporate raider, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, Daniel Kahneman / Amos Tversky, debt deflation, Deng Xiaoping, deskilling, discrete time, diversification, diversified portfolio, Doomsday Clock, Edward Thorp, Emanuel Derman, en.wikipedia.org, Eugene Fama: efficient market hypothesis, eurozone crisis, Everybody Ought to Be Rich, Fall of the Berlin Wall, financial independence, financial innovation, financial thriller, fixed income, full employment, global reserve currency, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, happiness index / gross national happiness, haute cuisine, high net worth, Hyman Minsky, index fund, information asymmetry, interest rate swap, invention of the wheel, invisible hand, Isaac Newton, job automation, Johann Wolfgang von Goethe, John Meriwether, joint-stock company, Jones Act, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, Kevin Kelly, laissez-faire capitalism, load shedding, locking in a profit, Long Term Capital Management, Louis Bachelier, margin call, market bubble, market fundamentalism, Marshall McLuhan, Martin Wolf, mega-rich, merger arbitrage, Mikhail Gorbachev, Milgram experiment, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, mortgage tax deduction, mutually assured destruction, Myron Scholes, Naomi Klein, negative equity, NetJets, Network effects, new economy, Nick Leeson, Nixon shock, Northern Rock, nuclear winter, oil shock, Own Your Own Home, Paul Samuelson, pets.com, Philip Mirowski, plutocrats, Plutocrats, Ponzi scheme, price anchoring, price stability, profit maximization, quantitative easing, quantitative trading / quantitative finance, Ralph Nader, RAND corporation, random walk, Ray Kurzweil, regulatory arbitrage, rent control, rent-seeking, reserve currency, Richard Feynman, Richard Thaler, Right to Buy, risk-adjusted returns, risk/return, road to serfdom, Robert Shiller, Robert Shiller, Rod Stewart played at Stephen Schwarzman birthday party, rolodex, Ronald Reagan, Ronald Reagan: Tear down this wall, Satyajit Das, savings glut, shareholder value, Sharpe ratio, short selling, Silicon Valley, six sigma, Slavoj Žižek, South Sea Bubble, special economic zone, statistical model, Stephen Hawking, Steve Jobs, survivorship bias, The Chicago School, The Great Moderation, the market place, the medium is the message, The Myth of the Rational Market, The Nature of the Firm, the new new thing, The Predators' Ball, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, trickle-down economics, Turing test, Upton Sinclair, value at risk, Yogi Berra, zero-coupon bond, zero-sum game

9 In 2010, as Dubai experienced its own financial crisis, the DIFC’s rents, once the second-most expensive after London, fell by two-thirds in a desperate effort to make the district more attractive. Unlikely Centers Ireland, historically a poor, agrarian economy, reinvented itself. In the 1970s, Ireland entered the European Union (EU) (then known as the European Economic Community). Influx of EU money, a well-educated population, low taxes, limited regulations, and business-friendly governments transformed Ireland into the Celtic tiger. In the late 1980s, Ireland established a financial center in Dublin—creatively named the International Financial Centre. Continental banks, especially from Germany, set up units in Dublin, raising money that was then channeled into various investments. Money flowed in and out, and profits were transferred back to the parent. The proximity to London helped. Indigenous Irish banks grew rapidly, and a seemingly endless supply of easy money drove the Irish economy.

Irish banks lent aggressively to property developers in an unprecedented real estate boom. Having doubled in price in a few years, a modest family home in Dublin cost the same as one in Beverly Hills. A three-bedroom penthouse in the Elysian, the tallest building in Ireland, complete with Porsche SE taps and views over Cork, cost €1.8 million ($2.6 million). Intoxicated at the success of the “Celtic tiger” and the country’s double-digit growth, the Irish splashed out, behaving like “a poor person who had won the lottery.” As novelist Anne Enright expressed it: “We’re very narcisstic...[believing] our boom was better than anyone else’s.”20 Now, house prices fell by 50 percent and the cranes that dotted Dublin’s skyline stood idle. The Irish banking system collapsed under the weight of bad loans, unable to raise money.

., 44, 341, 346 2001 tax cuts, 298 business schools, 308-313 bonuses, 317-318 compensation, 313-320 BusinessWeek, 170 buy and flick, 139 Byrd, Richard Evelyn, 256 Byrne, David, 46 Byrne, Rhonda, 45 C Caesar, 295 calculators, 122 call options, 209 Volkswagen (VW), 257 Callan, Erin, 288, 329 Calomiris, Charles, 273 Canadian dollars, 21 Canary Wharf, 79 Cantor, Eddie, 338 capital definition of, 280 flows, 205 gains, 160 injections into banks, 348-350 introductions, 247 leveraged, 244 Modigliani-Miller propositions, 119 structure arbitrage, 242 velocity of, 69 capital asset pricing model (CAPM), 117 capitalism, 102 Capitalism: A Love Story, 165 Capitalism: The Unknown Ideal, 297 CAPM (capital asset pricing model), 173 Capra, Frank, 65 carceral continuum, 312 careers certifications, 309-310 finance, 308-313 bonuses, 317-318 compensation, 313-320 Carlyle Group, The, 154, 163, 318 Carlyle, Thomas, 102 Carnegie Mellon University, 119 Carr, Fred, 145 Carroll, Lewis, 31 CARS (certificate for automobile receivables), 173 Carter, Jimmy, 74, 364 Caruso-Cabrera, Michelle, 95 Casablanca, 77, 311 Case, Steve, 58 cash flow, 138 forecasting, 160 General Electric (GE), 61 cash for clunkers, 348 Cassano, Joseph, 232 Cat’s Cradle, 339 catastrophe risk, 232 Catillo, Bernal Díaz del, 131 Cavendish Laboratory (Cambridge, England), 101 Cayman Islands, 220 Cayne, James, 318 CBOs (collateralized bond obligations), 173 CDOs (collateralized debt obligations), 173, 176 defaults of, 284 celebrity central bankers, age of, 297-300 celebrity financiers, 324-326 Celtic tiger, 83. See also Ireland Centaurus Energy, 319 Center for Research in Security Prices (CRSP), 131 Centlivre, Susannah, 75 central banks, 309 age of celebrity central bankers, 297-300 dissenters, 300-302 regulations, 279-281 risk transfers, 281-282 Central Intelligence Agency (CIA), 310 CEOs (chief executive officers) earnings, 323-324 knowledge of business operations, 292-293 Cerberus, 162 certifications, finance, 309-310 CFA (certified financial analyst), 309 Chains or Chain Link, 269 chains, mortgage, 183 Chancellor, Edward, 161 Chanos, Jim, 161 chaos theory, 274 Chase Manhattan Bank, 79 Chassagne-Montrachet, 304 Cheney, Dick, 265 Chesterton, G.K., 226 Chettle, Geoff, 228 Chicago, 104-105 Chicago Board of Option Exchange (CBOE), 122 Chicago Interpretation, the, 104, 130 Chicxulub crater, 339 Chiemgauer, 35 China, 82 Chinese Communist Party, 350 Chinese paper, 144 Chinese renminbi, 21 Chinese walls, 66 debt, purchase of American dollars, 87 as a financial center, 84-85 global credit process, 88 growth of, 86 relationship with America, 87 slowdown in economic activity, 350-351 China Aviation Oil (Singapore) Corporation, 56 Chinalco, 59 chits, 22 A Chorus Line, 164 Christianity, 65 Christie’s, 323 Chrysler, 162 Building, 79 purchase by Fiat, 344 Cioffi, Ralph, 191, 365 circulation of money, 32 Citadel Funds, 196, 241, 256 Citibank, 71 Citicorp Venture Capital, 154 Citicorp, merger of with Travelers, 75 Cities Services, 137 CitiGroup, 41, 75-77, 165, 290, 315 Center, 79 Todd Thompson, 93 City, the (London), 79 CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa), 91 civilization, 38 Clarke, David, 159 Clarkson, Brian, 284 clickety-clicks, 39.


The Rough Guide to Ireland by Clements, Paul

Berlin Wall, bike sharing scheme, British Empire, Celtic Tiger, Columbine, digital map, East Village, haute couture, Intergovernmental Panel on Climate Change (IPCC), Kickstarter, Murano, Venice glass, plutocrats, Plutocrats, Ronald Reagan, sustainable-tourism, the market place, trade route, urban planning, urban renewal, urban sprawl

By 2014, the unemployment rate had fallen to 11 percent and the country recorded a year-on-year economic growth rate of 7.7 percent, the highest in the Eurozone. Seasoned observers of Ireland’s boom-and-bust economy, however, could only wince as newspapers coined the term “The Celtic Phoenix”. THE RISE AND FALL OF THE CELTIC TIGER The 1990s witnessed a remarkable economic boom in the Republic, leading to the country’s acquisition of the soubriquet Celtic Tiger. Ireland’s emergence resulted from a combination of huge European Union subsidies (especially to farmers) and massive tax concessions to multinational companies, encouraging them to site operations in Dublin and elsewhere. For the first time in decades, Irish people actually returned home from abroad to seek work, reinvigorating an economy already bolstered by an increase in the number of graduates emerging from the country’s universities.

INTRODUCTION TO IRELAND Over the past three decades, Ireland has transformed itself with quiet determination. Gone – or certainly on its way out – is the image of a conservative, introspective, dourly rural nation, while the infamous unrest and violence have, mercifully, faded away. An outward-looking Ireland has stepped forward, energized by rejuvenated cities no longer weighed down by the Troubles, where the fresh ideas introduced by immigrants and returnees during the Celtic Tiger years of the 1990s are maturing nicely. Of course, it’s not called the Emerald Isle for nothing and Ireland’s physical appeal endures clear and true as a jewel – but it’s by no means a blanket of green. From the Burren’s grey limestone pavement and the black peat bogs of the Midlands (where some of the prehistoric gold ornaments on show in Dublin’s National Museum were dug up) to Connemara’s gold- and purple-tinged mountains, Ireland’s smouldering – even unnerving – good looks can send a shiver down your spine.

The most obvious evidence of reinvigoration in the city centre is the Temple Bar area, though the original intention to develop a Parisian-style quarter of ateliers and arts centres soon fell foul of the moneygrubbers, and the area is now home to a plethora of kitch tourist bars and fast-food chains. East of the centre, reconstruction continues in the city’s docklands. The so-called Celtic Tiger years of the late 1990s and early 2000s saw the wealth of the city grow exponentially, as a property boom drove the demolition of derelict or vacant buildings to make way for new apartments and offices. Another legacy of the boom was the arrival of migrants, particularly from Africa and Eastern Europe, which, together with the city’s longer-standing Chinese community, saw Dublin gradually inch towards multiculturalism.


pages: 131 words: 41,052

Why Europe Will Run the 21st Century by Mark Leonard

Berlin Wall, Celtic Tiger, continuous integration, cuban missile crisis, different worldview, European colonialism, facts on the ground, failed state, global reserve currency, invisible hand, knowledge economy, mass immigration, non-tariff barriers, North Sea oil, one-China policy, Panopticon Jeremy Bentham, pension reform, reserve currency, Robert Gordon, shareholder value, South China Sea, The Wealth of Nations by Adam Smith, Thomas Malthus, trade liberalization, Washington Consensus

In just ten years Finland has moved from being a sleepy agricultural backwater – dependent on the Soviet Union for most of its markets – to leading the world in IT and mobile phones (with Nokia making up over 30 per cent of the global mobile phones market, and Linux as the only real global challenger to Microsoft).3 Ireland has gone through a similar process, leaving its agricultural past behind to become the Celtic Tiger. Holland and Denmark have had some of the best job-creation records over the last decade through the growth of part-time jobs in the service sector, higher female employment, and wage moderation. These are the economies that are already being copied by other Europeans: Germany has developed its Agenda 2010 proposals, France has launched an ambitious programme of structural reforms, while the new members from Poland to Estonia have modernized their economies at a startling pace.4 Europe’s transformative power could one day spread to the economic world.


pages: 180 words: 61,340

Boomerang: Travels in the New Third World by Michael Lewis

Berlin Wall, Bernie Madoff, Carmen Reinhart, Celtic Tiger, collapse of Lehman Brothers, collateralized debt obligation, Credit Default Swap, credit default swaps / collateralized debt obligations, fiat currency, financial thriller, full employment, German hyperinflation, Irish property bubble, Kenneth Rogoff, offshore financial centre, pension reform, Ponzi scheme, Ronald Reagan, Ronald Reagan: Tear down this wall, South Sea Bubble, the new new thing, tulip mania, women in the workforce

HOW DID ANY of this happen? There are many theories: the elimination of trade barriers, the decision to grant free public higher education, a low corporate tax rate introduced in the 1980s, which turned Ireland into a tax haven for foreign corporations. Maybe the most intriguing was offered by a pair of demographers at Harvard, David E. Bloom and David Canning, in a 2003 paper called “Contraception and the Celtic Tiger.” Bloom and Canning argued that a major cause of the Irish boom was a dramatic increase in the ratio of working-age to non–working-age Irishmen, brought about by a crash in the Irish birthrate. This in turn had been mainly driven by Ireland’s decision, in 1979, to legalize birth control. That is, there was an inverse correlation between a nation’s fidelity to the Vatican’s edicts and its ability to climb out of poverty: out of the slow death of the Irish Catholic Church arose an economic miracle.


pages: 586 words: 160,321

The Euro and the Battle of Ideas by Markus K. Brunnermeier, Harold James, Jean-Pierre Landau

Affordable Care Act / Obamacare, asset-backed security, bank run, banking crisis, battle of ideas, Ben Bernanke: helicopter money, Berlin Wall, Bretton Woods, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Celtic Tiger, central bank independence, centre right, collapse of Lehman Brothers, collective bargaining, credit crunch, Credit Default Swap, currency peg, debt deflation, Deng Xiaoping, different worldview, diversification, Donald Trump, Edward Snowden, en.wikipedia.org, Fall of the Berlin Wall, financial deregulation, financial repression, fixed income, Flash crash, floating exchange rates, full employment, German hyperinflation, global reserve currency, income inequality, inflation targeting, information asymmetry, Irish property bubble, Jean Tirole, Kenneth Rogoff, Martin Wolf, mittelstand, money market fund, Mont Pelerin Society, moral hazard, negative equity, Neil Kinnock, new economy, Northern Rock, obamacare, offshore financial centre, open economy, paradox of thrift, pension reform, price stability, principal–agent problem, quantitative easing, race to the bottom, random walk, regulatory arbitrage, rent-seeking, reserve currency, road to serfdom, secular stagnation, short selling, Silicon Valley, South China Sea, special drawing rights, the payments system, too big to fail, union organizing, unorthodox policies, Washington Consensus, WikiLeaks, yield curve

The payments then went back from Spanish banks into the German financial system, ultimately helping to pay the wages of German workers. Figure 9.3 depicts this stylized process. FIGURE 9.3. Schematic Representation of Fund Flows between Germany and Spain This stylized example can help us understand the emergence of property bubbles in Ireland and Spain. Ireland enjoyed strong export growth from the late 1980s, accelerating in the mid-1990s, when the Irish economy earned its “Celtic Tiger” moniker. This export growth translated into strong economic activity and a general sense of economic security among Irish households. This, together with low nominal and real interest rates as a result of monetary union, resulted in a dramatic expansion of housing demand and, with a slight lag, an expansion of housing supply. Expectations of ever-increasing home prices then led to speculative house purchases, which boosted prices and drove the construction boom even further.

Complacency resulted in the banks fueling the late stage of an obvious construction bubble with massive foreign borrowing, leaving them exposed to solvency and liquidity risks which in past times would have been inconceivable.”25 Although many had warned that the banking sector might prove insolvent in the face of a downturn in housing prices, this eventuality was not adequately forecasted by relevant economic actors. On top of that, debt overhang prevented the recovery of growth, and as Jörg Asmussen (then a member of the executive board of the ECB) pointed out in a speech given in Dublin, the Celtic Tiger also suffered from a serious lack of competitiveness.26 The Irish government stepped in to save the financial sector: it decided on September 30, 2008, to guarantee (for two years) bank liabilities and later committed to large recapitalization programs. These unilaterally taken decisions were not approved by the ECB, which expressed its disapproval in two published opinions in October 2008.


pages: 322 words: 77,341

I.O.U.: Why Everyone Owes Everyone and No One Can Pay by John Lanchester

asset-backed security, bank run, banking crisis, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Black-Scholes formula, Blythe Masters, Celtic Tiger, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, Daniel Kahneman / Amos Tversky, diversified portfolio, double entry bookkeeping, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, financial innovation, fixed income, George Akerlof, greed is good, hedonic treadmill, hindsight bias, housing crisis, Hyman Minsky, intangible asset, interest rate swap, invisible hand, Jane Jacobs, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Meriwether, Kickstarter, laissez-faire capitalism, light touch regulation, liquidity trap, Long Term Capital Management, loss aversion, Martin Wolf, money market fund, mortgage debt, mortgage tax deduction, mutually assured destruction, Myron Scholes, negative equity, new economy, Nick Leeson, Norman Mailer, Northern Rock, Own Your Own Home, Ponzi scheme, quantitative easing, reserve currency, Right to Buy, risk-adjusted returns, Robert Shiller, Robert Shiller, Ronald Reagan, shareholder value, South Sea Bubble, statistical model, The Great Moderation, the payments system, too big to fail, tulip mania, value at risk

It’s grotesque that a place with a hinterland as rural as Galway and as copious a supply of fresh rainfall should have no drinkable water. The reason it didn’t was that the whole area had grown so fast, and with so little planning and attention to sustainability, that the infrastructure had broken down—in this case, the water-treatment infrastructure. That should have been a glaring indicator of the crisis which was about to engulf the “Celtic Tiger,” thanks to the carelessness with which its politicians had mismanaged the good years. To some of us who know and love Ireland, it was always a bad sign that the Irish economic miracle was named after an animal which doesn’t exist. Only a few months on from that, and Ireland was in the worst economic contraction of any developed country since the Great Depression. Ireland, joked the Economist in February 2008 (or maybe that should be semijoked) is at risk of being “Rekjavik on Liffey,” and it quoted a local witticism: “What’s the difference between Ireland and Iceland?


pages: 283 words: 73,093

Social Democratic America by Lane Kenworthy

affirmative action, Affordable Care Act / Obamacare, barriers to entry, basic income, business cycle, Celtic Tiger, centre right, clean water, collective bargaining, corporate governance, David Brooks, desegregation, Edward Glaeser, endogenous growth, full employment, Gini coefficient, hiring and firing, Home mortgage interest deduction, illegal immigration, income inequality, invisible hand, Kenneth Arrow, labor-force participation, manufacturing employment, market bubble, minimum wage unemployment, new economy, postindustrial economy, purchasing power parity, race to the bottom, rent-seeking, rising living standards, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, school choice, shareholder value, sharing economy, Skype, Steve Jobs, too big to fail, Tyler Cowen: Great Stagnation, union organizing, universal basic income, War on Poverty, working poor, zero day

In the past half century, a number of national models have gone in and out of fashion, first surging to the front and then falling back: Sweden (“middle way”) in the 1960s, Germany (“modell Deutschland”) and Japan (“Japan Inc.”) in the 1970s and 1980s, the United States (“great American jobs machine”) in the 1980s and 1990s, the Netherlands (“Dutch miracle”) in the 1990s, Denmark (“flexicurity”) and Ireland (“Celtic tiger”) in the 1990s and 2000s. Some later rebounded, such as Sweden in the 2000s and Germany in the 2010s. Economic growth is valuable. Yet for affluent democratic countries, we know very little about what causes faster or slower growth. Should we throw up our hands in despair? Not necessarily. The upside is that policies and institutions aimed at other outcomes, such as security and fairness, seldom doom the economy to stagnation.


pages: 274 words: 73,344

Found in Translation: How Language Shapes Our Lives and Transforms the World by Nataly Kelly, Jost Zetzsche

airport security, Berlin Wall, Celtic Tiger, crowdsourcing, Donald Trump, glass ceiling, Machine translation of "The spirit is willing, but the flesh is weak." to Russian and back, randomized controlled trial, Ray Kurzweil, Skype, speech recognition, Steve Jobs, the market place

It’s the name of an Old Irish harp melody called “Cailín ó cois Stúir mé,” meaning “girl from the banks of the Suir” (the River Suir is located in Tipperary, Ireland).28 Indeed, even King Lear, regarded to be Shakepeare’s finest work, is thought to be based on the older Irish legend, the Children of Lir, which tells the tale of a king deprived of what he believes is his rightful ascendancy over his children and peers. In other words, no Irish-language literature would have meant—you guessed it—no Shakespeare, at least, not as we know him. So what will the fate of this language of such historical importance ultimately be? “Irish is not dying, but evolving with the times,” McLoughlin explains. He believes that during the Celtic Tiger years, many Irish people forgot about their culture and what made them unique as a people. “The argument that Irish is a dying language is one of ignorance,” McLoughlin points out. “It’s no longer the language of fishermen and small farmers in the west of Ireland, but the language of college students, academics, and television personalities,” he notes. “People see it as a token of our identity and a reflection of our national spirit.


pages: 285 words: 81,743

Start-Up Nation: The Story of Israel's Economic Miracle by Dan Senor, Saul Singer

"Robert Solow", agricultural Revolution, Albert Einstein, back-to-the-land, banking crisis, Boycotts of Israel, call centre, Celtic Tiger, cleantech, Dissolution of the Soviet Union, friendly fire, immigration reform, labor-force participation, mass immigration, new economy, pez dispenser, post scarcity, profit motive, Silicon Valley, smart grid, social graph, sovereign wealth fund, Steve Ballmer, web application, women in the workforce, Yom Kippur War

Luck in Entrepreneurship and Venture Capital: Evidence from Serial Entrepreneurs.” Working paper 12592. National Bureau of Economic Research, October 2006. http://imio.haag.berkley.edu/williamsonseminar/scharfstein041207.pdf. Groysberg, Boris, Tal Riesenfeld, and Eliot Sherman. “Israeli Special Forces: Selection Strategy.” Harvard Business School Case 409-041, September 2008. Case Library, Harvard Business Publishing. Haider, Don. “Ireland: Celtic Tiger.” Harvard Business School Case KEL-141, January 2005. Case Library, Harvard Business Publishing. Handwerker, Haim. “U.S. Entrepreneur Makes Aliyah Seeking ‘Next Big Invention.’ ” Haaretz, August 28, 2008. Hari, Johann. “The Dark Side of Dubai.” Independent, April 7, 2009. http://www.independent.co.uk/opinion/commentators/johann-hari/the-dark-side-of-dubai-1664368.html. Horovitz, Jacques, and Anne-Valerie Ohlsson.


pages: 237 words: 72,716

The Inequality Puzzle: European and US Leaders Discuss Rising Income Inequality by Roland Berger, David Grusky, Tobias Raffel, Geoffrey Samuels, Chris Wimer

Branko Milanovic, business cycle, Celtic Tiger, collective bargaining, corporate governance, corporate social responsibility, double entry bookkeeping, equal pay for equal work, fear of failure, financial innovation, full employment, Gini coefficient, hiring and firing, illegal immigration, income inequality, invisible hand, Long Term Capital Management, microcredit, offshore financial centre, principal–agent problem, profit maximization, rent-seeking, shareholder value, Silicon Valley, Silicon Valley startup, time value of money, very high income

The Nordic countries are well known for their more egalitarian societies and their Gini scores are indeed correspondingly below the OECD Gini average. However, since the mid-1980s, with the exception of Denmark, they have recorded among the highest increases in Gini coefficients among all OECD countries. Until the financial crisis, Ireland’s rapid growth, more akin to a developing country, earned it the Celtic Tiger moniker. Rapidly developing countries typically experience rising inequality, yet over the same period when all Scandinavian countries saw increasing inequality, Ireland experienced decreasing inequality despite high growth. However, we should be quite cautious when comparing country performances in areas such as inequality because we need more consistent information to make appropriate comparisons.


pages: 261 words: 86,905

How to Speak Money: What the Money People Say--And What It Really Means by John Lanchester

asset allocation, Basel III, Bernie Madoff, Big bang: deregulation of the City of London, bitcoin, Black Swan, blood diamonds, Bretton Woods, BRICs, business cycle, Capital in the Twenty-First Century by Thomas Piketty, Celtic Tiger, central bank independence, collapse of Lehman Brothers, collective bargaining, commoditize, creative destruction, credit crunch, Credit Default Swap, crony capitalism, Dava Sobel, David Graeber, disintermediation, double entry bookkeeping, en.wikipedia.org, estate planning, financial innovation, Flash crash, forward guidance, Gini coefficient, global reserve currency, high net worth, High speed trading, hindsight bias, income inequality, inflation targeting, interest rate swap, Isaac Newton, Jaron Lanier, joint-stock company, joint-stock limited liability company, Kodak vs Instagram, liquidity trap, London Interbank Offered Rate, London Whale, loss aversion, margin call, McJob, means of production, microcredit, money: store of value / unit of account / medium of exchange, moral hazard, Myron Scholes, negative equity, neoliberal agenda, New Urbanism, Nick Leeson, Nikolai Kondratiev, Nixon shock, Northern Rock, offshore financial centre, oil shock, open economy, paradox of thrift, plutocrats, Plutocrats, Ponzi scheme, purchasing power parity, pushing on a string, quantitative easing, random walk, rent-seeking, reserve currency, Richard Feynman, Right to Buy, road to serfdom, Ronald Reagan, Satoshi Nakamoto, security theater, shareholder value, Silicon Valley, six sigma, Social Responsibility of Business Is to Increase Its Profits, South Sea Bubble, sovereign wealth fund, Steve Jobs, survivorship bias, The Chicago School, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, trickle-down economics, Washington Consensus, wealth creators, working poor, yield curve

The festival was the brainchild of two brilliant Irishmen, the economist David McWilliams and the comedy producer Richard Cook. The thinking behind it went something like this: Ireland had been bankrupted by its government’s stupid decision to stand behind the debts of the country’s insolvent banks. The consequences in terms of economic collapse were already severe—job losses, pay cuts, tax rises, emigration, a spike in the suicide rate—and were likely to become more so. The economic miracle of the Celtic Tiger had turned into a disaster. Ireland was in a strange mood, a mixture of resignation and fury, alternating between the two feelings so quickly it was almost as if there was a bizarre new hybrid emotion: blazingly furious philosophical resignation. In that atmosphere Cook and McWilliams—McWilliams having been one of the very few Irish economists to have predicted the crash—decided that since the only two things you could really do about the current predicament were laugh or cry, why not laugh?


pages: 561 words: 87,892

Losing Control: The Emerging Threats to Western Prosperity by Stephen D. King

Admiral Zheng, asset-backed security, barriers to entry, Berlin Wall, Bernie Madoff, Bretton Woods, BRICs, British Empire, business cycle, capital controls, Celtic Tiger, central bank independence, collateralized debt obligation, corporate governance, credit crunch, crony capitalism, currency manipulation / currency intervention, currency peg, David Ricardo: comparative advantage, demographic dividend, demographic transition, Deng Xiaoping, Diane Coyle, Fall of the Berlin Wall, financial deregulation, financial innovation, fixed income, Francis Fukuyama: the end of history, full employment, G4S, George Akerlof, German hyperinflation, Gini coefficient, hiring and firing, income inequality, income per capita, inflation targeting, invisible hand, Isaac Newton, knowledge economy, labour market flexibility, labour mobility, liberal capitalism, low skilled workers, market clearing, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, Naomi Klein, new economy, old age dependency ratio, Paul Samuelson, Ponzi scheme, price mechanism, price stability, purchasing power parity, rent-seeking, reserve currency, rising living standards, Ronald Reagan, savings glut, Silicon Valley, Simon Kuznets, sovereign wealth fund, spice trade, statistical model, technology bubble, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Market for Lemons, The Wealth of Nations by Adam Smith, Thomas Malthus, trade route, transaction costs, Washington Consensus, women in the workforce, working-age population, Y2K, Yom Kippur War

The success of the developed world partly rests, then, on freedom of expression and the rule of law (particularly with regard to the establishment of legally enforceable property rights, a point well understood by Adam Smith: the incentive to develop a new product is much reduced if there’s no patent system, for example).14 Meanwhile, contraception has limited population growth in the developed world and, hence, has allowed ever-increasing income to be shared out among the lucky few. Ireland’s Celtic Tiger boom in the 1980s and 1990s was achieved in part because women were able to go out to work rather than staying at home to endure far too many births: contraception can also play a big role in creating economic opportunity. As Sir Isaac Newton might have said, we benefit economically from standing on the shoulders of centuries of creative, inventive and innovative giants. Each giant made his or her own contribution to the advancement of productivity.


pages: 301 words: 88,082

The Great Tax Robbery: How Britain Became a Tax Haven for Fat Cats and Big Business by Richard Brooks

accounting loophole / creative accounting, bank run, Big bang: deregulation of the City of London, bonus culture, Bretton Woods, carried interest, Celtic Tiger, collateralized debt obligation, commoditize, Corn Laws, corporate social responsibility, crony capitalism, Double Irish / Dutch Sandwich, financial deregulation, haute couture, intangible asset, interest rate swap, Jarndyce and Jarndyce, mega-rich, Northern Rock, offshore financial centre, race to the bottom, shareholder value, short selling, supply-chain management, The Chicago School, The Wealth of Nations by Adam Smith, transfer pricing

At the same time it had been telling investors – as anybody strolling along a high street would agree – that its British operations were prospering. Again, the tax result could be put down to standard techniques including buying beans from a Starbucks company in Switzerland and paying royalties to use the global brand through a related Dutch company.‌15 American companies operating in the UK have long found tax relief not just across the North Sea, but the Irish one too. Tax poaching was always one of the Celtic Tiger’s main stripes. It started in the 1990s with a 10% tax rate in a special financial services incentive zone in Dublin’s regenerated docks area, combined with other breaks for high-tech companies and then, from 2003, an across-the-board 12.5% tax rate. Ostensibly aimed at luring companies to employ people in the country, the tax breaks have proved too good to resist for many companies seeking simply to divert profits as much as establish any real business.


The Data Revolution: Big Data, Open Data, Data Infrastructures and Their Consequences by Rob Kitchin

Bayesian statistics, business intelligence, business process, cellular automata, Celtic Tiger, cloud computing, collateralized debt obligation, conceptual framework, congestion charging, corporate governance, correlation does not imply causation, crowdsourcing, discrete time, disruptive innovation, George Gilder, Google Earth, Infrastructure as a Service, Internet Archive, Internet of things, invisible hand, knowledge economy, late capitalism, lifelogging, linked data, longitudinal study, Masdar, means of production, Nate Silver, natural language processing, openstreetmap, pattern recognition, platform as a service, recommendation engine, RFID, semantic web, sentiment analysis, slashdot, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, smart grid, smart meter, software as a service, statistical model, supply-chain management, the scientific method, The Signal and the Noise by Nate Silver, transaction costs

., Fotheringham, S. and Lloyd, C. (2007) ‘Joined-up thinking across the Irish border: making the data more compatible’, Journal of Cross Border Studies, 2: 22–33. Kitchin, R., Gleeson, J. and Dodge, M. (2012a) ‘Unfolding mapping practices: a new epistemology for cartography’, Transactions of the Institute of British Geographers, 38(3): 480–96. Kitchin, R., O’Callaghan, C., Boyle, M., Gleeson J. and Keaveney, K. (2012b) ‘Placing neoliberalism: the rise and fall of Ireland’s Celtic Tiger’, Environment and Planning A, 44: 1302–26. Koops, B.J. (2011) ‘Forgetting footprints, shunning shadows: a critical analysis of the “right to be forgotten” in big data practice’, SCRIPTed, 8(3): 229–56. Kourtit, K., Nijkamp, P. and Arribas-Bel, D. (2012) ‘Smart cities perspective – a comparative European study by means of self-organizing maps’, Innovation, 25(2): 229–46. Kuhn, T. (1962) The Structure of Scientific Revolutions.


I, Partridge: We Need to Talk About Alan by Steve Coogan

call centre, Celtic Tiger, citation needed, cuban missile crisis, late fees, means of production, negative equity, University of East Anglia, young professional

Hanging up, I slump against the side of the phone box and slide into a heap on the floor, the calling cards of a hundred local whores raining down on me like big drops of prostitute rain. I begin to weep. I have cheated death. I am free. And today? I am stronger, wiser and happy. People assume the episode must have profoundly affected me but I can honestly say it’s not something I ever think about. Move on. (You may now remove your Kevlar body armour.) 157 Press play on Track 30. 158 I’ve got a lot of time for Ireland. Its economy was known as the Celtic Tiger, which I loved. Then, of course, it hit the wall, much like that sleeping dog on YouTube. Very funny. Just type in ‘sleeping dog runs into wall’. If you don’t watch it about ten times back-to-back, there’s something wrong with you. I also like sneezing panda, keyboard cat, dramatic chipmunk, skateboarding dog, otters holding hands and ‘Don’t Taze Me, Bro’. 159 Each to his own and all that, but the idea of a man looking at my rock-hard buttocks and salivating makes me want to run home and dead-lock the doors.


pages: 315 words: 99,065

The Virgin Way: Everything I Know About Leadership by Richard Branson

barriers to entry, call centre, carbon footprint, Celtic Tiger, clean water, collective bargaining, Costa Concordia, Donald Trump, Elon Musk, friendly fire, glass ceiling, illegal immigration, index card, inflight wifi, Lao Tzu, low cost airline, low cost carrier, M-Pesa, Mahatma Gandhi, Mark Zuckerberg, Nelson Mandela, Northern Rock, profit motive, Ralph Waldo Emerson, Ronald Reagan, shareholder value, Silicon Valley, stem cell, Steve Jobs, Tesla Model S, trade route, zero-sum game

American property magnate Donald Trump is another controversial character who seems to be either loved or hated by the consumer and is perhaps most famous for his ‘You’re fired’ line, something he seems to delight in telling people on his TV show The Apprentice. Unlike both these very successful gentlemen I have always believed there are tremendous upsides to a more conciliatory approach to life and business – an attitude that even Michael O’Leary is now publicly proclaiming he wants his much-maligned airline to assume, although it remains to be seen whether or not this particular Celtic Tiger can change his stripes. I’m not a betting man, but if I were, I’m not at all sure I would put money on this one! While I wouldn’t be foolish enough to pretend that Virgin’s three airlines have never had passengers with valid complaints or that I have never fired anyone, I can honestly say that, unlike Mr Trump, the latter is not something I have ever taken the slightest pleasure in doing.


pages: 346 words: 101,255

The Big Necessity: The Unmentionable World of Human Waste and Why It Matters by Rose George

American Society of Civil Engineers: Report Card, Anton Chekhov, Bob Geldof, Celtic Tiger, clean water, glass ceiling, indoor plumbing, informal economy, job satisfaction, John Snow's cholera map, joint-stock company, land reform, low cost airline, Nelson Mandela, New Urbanism, Pepto Bismol, Potemkin village, Report Card for America’s Infrastructure, Steven Pinker, urban planning

Crypto was a big cuddly version of a parasite called cryptosporidium, a disease-causing protozoa—a single-celled, amoeba-like organism—that can travel in feces. For five months and counting, Crypto and his billions of cousins had been the reason that a rich and developed city in a rich and developed country had no drinking water. A cultural center of Europe, in a land wealthy enough to be nicknamed the Celtic Tiger, was forced to issue boil-water notices more familiar in places of poverty and dust where children die young. It had begun in early March, with reports of persistent stomachaches and diarrhea. There were hospitalizations, of the vulnerable (the old, the young, the immuno-suppressed) and there was bewilderment as to the cause. Something had polluted the drinking-water supply of Lough Corrib.


pages: 576 words: 105,655

Austerity: The History of a Dangerous Idea by Mark Blyth

"Robert Solow", accounting loophole / creative accounting, balance sheet recession, bank run, banking crisis, Black Swan, Bretton Woods, business cycle, buy and hold, capital controls, Carmen Reinhart, Celtic Tiger, central bank independence, centre right, collateralized debt obligation, correlation does not imply causation, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency peg, debt deflation, deindustrialization, disintermediation, diversification, en.wikipedia.org, ending welfare as we know it, Eugene Fama: efficient market hypothesis, eurozone crisis, financial repression, fixed income, floating exchange rates, Fractional reserve banking, full employment, German hyperinflation, Gini coefficient, global reserve currency, Growth in a Time of Debt, Hyman Minsky, income inequality, information asymmetry, interest rate swap, invisible hand, Irish property bubble, Joseph Schumpeter, Kenneth Rogoff, liberal capitalism, liquidationism / Banker’s doctrine / the Treasury view, Long Term Capital Management, market bubble, market clearing, Martin Wolf, money market fund, moral hazard, mortgage debt, mortgage tax deduction, Occupy movement, offshore financial centre, paradox of thrift, Philip Mirowski, price stability, quantitative easing, rent-seeking, reserve currency, road to serfdom, savings glut, short selling, structural adjustment programs, The Great Moderation, The Myth of the Rational Market, The Wealth of Nations by Adam Smith, Tobin tax, too big to fail, unorthodox policies, value at risk, Washington Consensus, zero-sum game

Ireland reduced its gross government debt-to-GNP ratio from 112 percent in 1986 to 25 percent in 2007, and its net debt to GDP in 2007 stood at a mere 12 percent.27 It was able to do this by exporting to countries that were expanding and by up-skilling its workforce to take advantage of the influx of multinational corporations that were keen to use Ireland, with its English-speaking workforce and low corporate tax rates, as a gateway to a single-market Europe. Ireland’s GNP rose significantly, as did wages, boosting both consumption and tax revenues. The growth of this so-called Celtic Tiger economy during the late 1990s encouraged more people to look to property as an investment, and in doing so Ireland generated a massive banking accident waiting to happen, without a Fannie, a Freddie, or anything like them being present. Part of what stoked the bubble in Ireland had also affected Greece: the bond-buying activities of major European banks, which gave the periphery cheap money, combined with low interest rates set by the ECB that translated into zero, if not negative real rates, in Ireland and Spain from 2000 onward.


pages: 492 words: 70,082

Immigration worldwide: policies, practices, and trends by Uma Anand Segal, Doreen Elliott, Nazneen S. Mayadas

affirmative action, Asian financial crisis, Berlin Wall, borderless world, British Empire, Celtic Tiger, centre right, conceptual framework, credit crunch, demographic transition, deskilling, en.wikipedia.org, European colonialism, Fall of the Berlin Wall, financial independence, full employment, global village, guest worker program, illegal immigration, immigration reform, income inequality, income per capita, informal economy, knowledge economy, labor-force participation, labour mobility, longitudinal study, low skilled workers, mass immigration, minimum wage unemployment, moral panic, Nelson Mandela, New Urbanism, open borders, phenotype, South China Sea, structural adjustment programs, trade route, transaction costs, upwardly mobile, urban planning, women in the workforce

Finally, citizens of Iceland, Liechtenstein, and Norway do not require permits to work in Ireland, as these countries together with the member states of the EU form the European Economic Area (EEA). The significant increase in the number of labor migrants coming to Ireland since the mid-1990s is largely the result of the demand for workers during a period of economic growth commonly known as the ‘‘Celtic Tiger.’’ Thus Quinn (2006a, p. 5) notes that ‘‘the growth in immigration and the drop in emigration experienced in Ireland are trends that are mainly attributable to domestic economic development. It is now accepted that the boom, in what became known as the era of the ‘‘Celtic Tiger,’’ resulted in real growth rates in excess of 8 percent per annum during the second half of the 1990s and an increase of nearly 400,000 jobs, or almost 30 percent, from 1.3 million in 1996 to 1.7 million in 2001.’’ Quinn and O’Connell (2007, p. 4) further note, ‘‘The economic boom of the past two decades or so have, particularly in the past decade, led to a dramatic increase in employment demand.


pages: 1,066 words: 273,703

Crashed: How a Decade of Financial Crises Changed the World by Adam Tooze

Affordable Care Act / Obamacare, Apple's 1984 Super Bowl advert, Asian financial crisis, asset-backed security, bank run, banking crisis, Basel III, Berlin Wall, Bernie Sanders, Big bang: deregulation of the City of London, Boris Johnson, break the buck, Bretton Woods, BRICs, British Empire, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Celtic Tiger, central bank independence, centre right, collateralized debt obligation, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, dark matter, deindustrialization, desegregation, Detroit bankruptcy, Dissolution of the Soviet Union, diversification, Doha Development Round, Donald Trump, Edward Glaeser, Edward Snowden, en.wikipedia.org, energy security, eurozone crisis, Fall of the Berlin Wall, family office, financial intermediation, fixed income, Flash crash, forward guidance, friendly fire, full employment, global reserve currency, global supply chain, global value chain, Goldman Sachs: Vampire Squid, Growth in a Time of Debt, housing crisis, Hyman Minsky, illegal immigration, immigration reform, income inequality, interest rate derivative, interest rate swap, Kenneth Rogoff, large denomination, light touch regulation, Long Term Capital Management, margin call, Martin Wolf, McMansion, Mexican peso crisis / tequila crisis, mittelstand, money market fund, moral hazard, mortgage debt, mutually assured destruction, negative equity, new economy, Northern Rock, obamacare, Occupy movement, offshore financial centre, oil shale / tar sands, old-boy network, open economy, paradox of thrift, Peter Thiel, Ponzi scheme, predatory finance, price stability, private sector deleveraging, purchasing power parity, quantitative easing, race to the bottom, reserve currency, risk tolerance, Ronald Reagan, savings glut, secular stagnation, Silicon Valley, South China Sea, sovereign wealth fund, special drawing rights, structural adjustment programs, The Great Moderation, Tim Cook: Apple, too big to fail, trade liberalization, upwardly mobile, Washington Consensus, We are the 99%, white flight, WikiLeaks, women in the workforce, Works Progress Administration, yield curve, éminence grise

Cárdenas, “The Spanish Savings Bank Crisis: History, Causes and Responses” (Working Paper 13-003, Universitat Oberta de Catalunya, 2013); and Santos, “Antes del Diluvio.” 43. T. Santos, “El Diluvio: The Spanish Banking Crisis, 2008–2012,” manuscript, Columbia Business School, Columbia University (2017). 44. Santos, “Antes del Diluvio.” 45. I. Jack, “Ireland: The Rise and the Crash,” New York Review of Books, November 11, 2010, reviewing F. O’Toole, Ship of Fools: How Stupidity and Corruption Sank the Celtic Tiger (London: Faber and Faber, 2009). 46. P. De Grauwe, “How to Embed the Eurozone in a Political Union,” Vox, June 17, 2010. For a devastating review of the blindspots of conventional theories of optimum currency area and their insistence on fiscal integration see Schelkle, Political Economy of Monetary Solidarity, 174–179. For a review of discussions about financial stabilization following the Maastricht Treaty of 1992 see M.

Goldenberg, “Bradford & Bingley: Another Day, Another Bail-out,” Guardian, September 28, 2008. 62. Y. Melin and P. Billiet, “Le scandale Fortis, une histoire belge,” La Revue, January 16, 2009. 63. C. Schömann-Finc, “Skandalbank HRE: Wie Ackermann Merkel in der Rettungsnacht über den Tisch zog,” Focus Money, September 16, 2013. 64. F. O’Toole, Ship of Fools: How Stupidity and Corruption Sank the Celtic Tiger (London: Faber & Faber, 2009). 65. S. Carswell, Anglo Republic: Inside the Bank That Broke Ireland (London: Penguin, 2011). 66. Darling, Back from the Brink, 143. 67. Ibid., 144. 68. Gammelin and Löw, Europas Strippenzieher, 59. 69. L. Phillips, “France and Germany at Odds over EU ‘Paulson Plan,’” EU Observer, October 2, 2008. 70. E. Cody and K. Sullivan, “European Leaders Split on Rescue Strategy,” Washington Post, October 3, 2008. 71.


pages: 414 words: 119,116

The Health Gap: The Challenge of an Unequal World by Michael Marmot

active measures, active transport: walking or cycling, Affordable Care Act / Obamacare, Atul Gawande, Bonfire of the Vanities, Broken windows theory, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Celtic Tiger, centre right, clean water, congestion charging, correlation does not imply causation, Doha Development Round, epigenetics, financial independence, future of work, Gini coefficient, Growth in a Time of Debt, illegal immigration, income inequality, Indoor air pollution, Kenneth Rogoff, Kibera, labour market flexibility, longitudinal study, lump of labour, Mahatma Gandhi, meta analysis, meta-analysis, microcredit, New Urbanism, obamacare, paradox of thrift, race to the bottom, Rana Plaza, RAND corporation, road to serfdom, Simon Kuznets, Socratic dialogue, structural adjustment programs, the built environment, The Spirit Level, trickle-down economics, twin studies, urban planning, Washington Consensus, Winter of Discontent, working poor

One obvious mechanism is through unemployment, which, as summarised in Chapter 6, has an adverse impact on mental illness and on suicide rates. It also has an impact on the homicide rate. It is not too melodramatic to say that policies of austerity are leading people to take their own lives, and also to kill each other. Terminal 2 at Dublin airport is somehow symbolic of what Ireland has been through. The terminal is a wonderful testament to a once booming economy, built to be suitable for a Celtic Tiger, an economy that was going places. When I travel through Terminal 2 now, its echoing halls seem to represent the downside, the hollowness of the promise that the people of Ireland could be rich by lending each other money they didn’t have.8 A taxi driver shakes your hand, so pleased is he to have any business. In Dublin itself, ‘To Let’ signs on empty office buildings, deserted restaurants and pubs half full are signs of what happens when a growth economy collapses.


pages: 756 words: 120,818

The Levelling: What’s Next After Globalization by Michael O’sullivan

"Robert Solow", 3D printing, Airbnb, algorithmic trading, bank run, banking crisis, barriers to entry, Bernie Sanders, bitcoin, Black Swan, blockchain, Boris Johnson, Branko Milanovic, Bretton Woods, British Empire, business cycle, business process, capital controls, Celtic Tiger, central bank independence, cloud computing, continuation of politics by other means, corporate governance, credit crunch, cryptocurrency, deglobalization, deindustrialization, disruptive innovation, distributed ledger, Donald Trump, eurozone crisis, financial innovation, first-past-the-post, fixed income, Geoffrey West, Santa Fe Institute, Gini coefficient, global value chain, housing crisis, income inequality, Intergovernmental Panel on Climate Change (IPCC), knowledge economy, liberal world order, Long Term Capital Management, longitudinal study, market bubble, minimum wage unemployment, new economy, Northern Rock, offshore financial centre, open economy, pattern recognition, Peace of Westphalia, performance metric, private military company, quantitative easing, race to the bottom, reserve currency, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, Scramble for Africa, secular stagnation, Silicon Valley, Sinatra Doctrine, South China Sea, South Sea Bubble, special drawing rights, supply-chain management, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, total factor productivity, trade liberalization, tulip mania, Valery Gerasimov, Washington Consensus

The second issue is that Ireland still regularly suffers from imbalances in its economy, the most obvious one today being that house prices and rental charges are higher than during its bubble period, and that there is a resulting housing crisis. Ireland’s overheated property market is one area where it can learn from other small countries. In the past it has found it too easy to copy the policy model of the United Kingdom and has ignored the lessons of other small open countries (notably, the Scandinavian banking crisis of the 1990s came to the notice of Irish policy makers only after the collapse of the Celtic Tiger). Brexit will, naturally, change this. As regards housing, Ireland as a country still needs to decide that “houses are for living in, not for speculation,” to quote a recent remark from China’s president.8 It must then act accordingly from a fiscal and regulatory point of view. A further challenge is to build up the domestic economic sector. Sweden and Switzerland (and to a much more specifically technological degree, Israel) are good examples of countries that have created the cultural, financial, and human capital conditions allowing medium-sized enterprises to thrive.


pages: 482 words: 121,173

Tools and Weapons: The Promise and the Peril of the Digital Age by Brad Smith, Carol Ann Browne

Affordable Care Act / Obamacare, AI winter, airport security, Albert Einstein, augmented reality, autonomous vehicles, barriers to entry, Berlin Wall, Boeing 737 MAX, business process, call centre, Celtic Tiger, chief data officer, cloud computing, computer vision, corporate social responsibility, Donald Trump, Edward Snowden, en.wikipedia.org, immigration reform, income inequality, Internet of things, invention of movable type, invention of the telephone, Jeff Bezos, Mark Zuckerberg, minimum viable product, national security letter, natural language processing, Network effects, new economy, pattern recognition, precision agriculture, race to the bottom, ransomware, Ronald Reagan, Rubik’s Cube, school vouchers, self-driving car, Shoshana Zuboff, Silicon Valley, Skype, speech recognition, Steve Ballmer, Steve Jobs, The Rise and Fall of American Growth, Tim Cook: Apple, WikiLeaks, women in the workforce

Since the 1980s, Ireland had been something of a second home to the American tech sector. Microsoft had been the first technology company to invest there in a big way. Tax incentives and an English-speaking workforce first drew companies to the Emerald Isle. The country then used its membership in the European Union and its welcoming spirit to attract people from across Europe and then from around the world to live and work there, especially in the Dublin area. It fed the Celtic Tiger and sustained a new generation of prosperity for the small country. At Microsoft we took pride in our connections and contributions to this growth. Back in the 1980s, our European customers installed our software from CD-ROMs, which were manufactured in Ireland. But as software transitioned to the cloud, the Irish realized that the CD business would eventually vanish. They needed to make a new economic bet for the country.


pages: 489 words: 132,734

A History of Future Cities by Daniel Brook

Berlin Wall, British Empire, business process, business process outsourcing, call centre, carbon footprint, Celtic Tiger, collateralized debt obligation, collective bargaining, Credit Default Swap, credit default swaps / collateralized debt obligations, Deng Xiaoping, desegregation, Edward Glaeser, Fall of the Berlin Wall, financial innovation, glass ceiling, indoor plumbing, joint-stock company, land reform, Mikhail Gorbachev, New Urbanism, open economy, Parag Khanna, Pearl River Delta, Potemkin village, profit motive, rent control, sovereign wealth fund, special economic zone, starchitect, trade route, urban planning, urban renewal, working poor

The apotheosis of this trend would come in 2009, when the dictator of Azerbaijan amassed nine waterfront mansions during a two-week, $44 million buying spree—all purchased in the name of his eleven-year-old son. With the unprecedented land reform in place, the global real estate consulting firm Jones Lang LaSalle touted Dubai, along with Dublin and Las Vegas, as its “World Winning Cities” for 2002. The report put Dubai on global investors’ maps alongside the better-known capital of the Celtic Tiger and the Mojave Desert outpost that was then the fastest-growing city in the world’s largest economy. All three cities experienced massive booms, but Dubai’s was the most explosive. If early St. Petersburg was a Renaissance perspective drawing brought to life on a marshy tabula rasa, Dubai was a real-life SimCity, a fantastical metropolis that looked as if it had magically leapt from an architect’s laptop running the latest computer-assisted design software out onto the pristine desert.


pages: 497 words: 150,205

European Spring: Why Our Economies and Politics Are in a Mess - and How to Put Them Right by Philippe Legrain

3D printing, Airbnb, Asian financial crisis, bank run, banking crisis, barriers to entry, Basel III, battle of ideas, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, Bretton Woods, BRICs, British Empire, business cycle, business process, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Celtic Tiger, central bank independence, centre right, cleantech, collaborative consumption, collapse of Lehman Brothers, collective bargaining, corporate governance, creative destruction, credit crunch, Credit Default Swap, crony capitalism, currency manipulation / currency intervention, currency peg, debt deflation, Diane Coyle, disruptive innovation, Downton Abbey, Edward Glaeser, Elon Musk, en.wikipedia.org, energy transition, eurozone crisis, fear of failure, financial deregulation, first-past-the-post, forward guidance, full employment, Gini coefficient, global supply chain, Growth in a Time of Debt, hiring and firing, hydraulic fracturing, Hyman Minsky, Hyperloop, immigration reform, income inequality, interest rate derivative, Intergovernmental Panel on Climate Change (IPCC), Irish property bubble, James Dyson, Jane Jacobs, job satisfaction, Joseph Schumpeter, Kenneth Rogoff, Kickstarter, labour market flexibility, labour mobility, liquidity trap, margin call, Martin Wolf, mittelstand, moral hazard, mortgage debt, mortgage tax deduction, North Sea oil, Northern Rock, offshore financial centre, oil shale / tar sands, oil shock, open economy, peer-to-peer rental, price stability, private sector deleveraging, pushing on a string, quantitative easing, Richard Florida, rising living standards, risk-adjusted returns, Robert Gordon, savings glut, school vouchers, self-driving car, sharing economy, Silicon Valley, Silicon Valley startup, Skype, smart grid, smart meter, software patent, sovereign wealth fund, Steve Jobs, The Death and Life of Great American Cities, The Wealth of Nations by Adam Smith, too big to fail, total factor productivity, Tyler Cowen: Great Stagnation, working-age population, Zipcar

The cost of flights within the Europe has plunged: it is thanks to the EU that Ryanair can fly freely anywhere in Europe. Using your mobile phone in another EU country is less exorbitant. Your taxes stretch further because big government contracts have been opened up to competitive tendering, generating better value for money. For some countries, the EU’s single market has been transformational: thanks in large part to foreign investment attracted by its access to the EU market (and its low taxes), Ireland’s Celtic tiger economy leapt from poverty to prosperity within two decades. Freedoms that were unimaginable thirty years ago – that five hundred million people could move freely across the EU, from Lisbon to Lithuania and Leipzig to Liverpool – now seem normal. Asked what the EU means to them personally, Europeans’ top answer is the freedom to travel, study and work anywhere in the Union.735 The EU’s Charter of Fundamental Rights enshrines Europeans’ basic freedoms.


pages: 559 words: 155,372

Chaos Monkeys: Obscene Fortune and Random Failure in Silicon Valley by Antonio Garcia Martinez

Airbnb, airport security, always be closing, Amazon Web Services, Burning Man, Celtic Tiger, centralized clearinghouse, cognitive dissonance, collective bargaining, corporate governance, Credit Default Swap, crowdsourcing, death of newspapers, disruptive innovation, drone strike, El Camino Real, Elon Musk, Emanuel Derman, financial independence, global supply chain, Goldman Sachs: Vampire Squid, hive mind, income inequality, information asymmetry, interest rate swap, intermodal, Jeff Bezos, Kickstarter, Malcom McLean invented shipping containers, Marc Andreessen, Mark Zuckerberg, Maui Hawaii, means of production, Menlo Park, minimum viable product, MITM: man-in-the-middle, move fast and break things, move fast and break things, Network effects, orbital mechanics / astrodynamics, Paul Graham, performance metric, Peter Thiel, Ponzi scheme, pre–internet, Ralph Waldo Emerson, random walk, Ruby on Rails, Sam Altman, Sand Hill Road, Scientific racism, second-price auction, self-driving car, Silicon Valley, Silicon Valley startup, Skype, Snapchat, social graph, social web, Socratic dialogue, source of truth, Steve Jobs, telemarketer, undersea cable, urban renewal, Y Combinator, zero-sum game, éminence grise

As part of my role as shit umbrella/product manager for ads targeting, I had the unwelcome duty to be in on every call and meeting with some guy named Gary, who was evidently the one-man data protection office there. How the land of suffocating Catholicism and potato famines came to be the regulator of the biggest accumulation of personal data since DNA is a curious story. Ireland, following its rise as the “Celtic Tiger” in the mid-aughts and subsequent property crash, actively encouraged American companies to choose Dublin as their European base. Ireland offered tax incentives (the corporate tax rate was very low), an educated (and desperate for work) talent pool, and a rational legal framework. The net result was that the waterfront docks east of Dublin became colonized by US tech companies like Facebook, Google, and Airbnb, each running (mostly) its sales and operations teams out of gleaming new high-rise offices.


pages: 475 words: 155,554

The Default Line: The Inside Story of People, Banks and Entire Nations on the Edge by Faisal Islam

Asian financial crisis, asset-backed security, balance sheet recession, bank run, banking crisis, Basel III, Ben Bernanke: helicopter money, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, British Empire, capital controls, carbon footprint, Celtic Tiger, central bank independence, centre right, collapse of Lehman Brothers, credit crunch, Credit Default Swap, crony capitalism, dark matter, deindustrialization, Deng Xiaoping, disintermediation, energy security, Eugene Fama: efficient market hypothesis, eurozone crisis, financial deregulation, financial innovation, financial repression, floating exchange rates, forensic accounting, forward guidance, full employment, G4S, ghettoisation, global rebalancing, global reserve currency, hiring and firing, inflation targeting, Irish property bubble, Just-in-time delivery, labour market flexibility, light touch regulation, London Whale, Long Term Capital Management, margin call, market clearing, megacity, Mikhail Gorbachev, mini-job, mittelstand, moral hazard, mortgage debt, mortgage tax deduction, mutually assured destruction, Myron Scholes, negative equity, North Sea oil, Northern Rock, offshore financial centre, open economy, paradox of thrift, Pearl River Delta, pension reform, price mechanism, price stability, profit motive, quantitative easing, quantitative trading / quantitative finance, race to the bottom, regulatory arbitrage, reserve currency, reshoring, Right to Buy, rising living standards, Ronald Reagan, savings glut, shareholder value, sovereign wealth fund, The Chicago School, the payments system, too big to fail, trade route, transaction costs, two tier labour market, unorthodox policies, uranium enrichment, urban planning, value at risk, WikiLeaks, working-age population, zero-sum game

The ‘two Brians’ (finance minister Lenihan and Taioseach Cowen) felt that having funded their sovereign borrowing requirements until mid-2011 there was no need for the dead hand of the inspectors. If a programme was needed, they felt they had maximum bargaining power to limit their loss of sovereignty. That seemed to be mainly defined by keeping Ireland’s 12.5 per cent rate of corporation tax, the lowest in the Eurozone, and a totem of the Celtic Tiger. The policy had attracted tech giants such as Apple, Google and Microsoft, as well as Europe’s bankers. ‘Corporation tax had to be got off the agenda before we’d even start talking,’ said one Dublin official. ‘We made no bones about talking about being fully funded in mid-2011. With a bank run on, it wasn’t really in our interests to prolong it, but we could hold out for longer.’ Secret, plausibly deniable, negotiations had started with Brussels commissioner Olli Rehn in September 2010.


pages: 524 words: 155,947

More: The 10,000-Year Rise of the World Economy by Philip Coggan

"Robert Solow", accounting loophole / creative accounting, Ada Lovelace, agricultural Revolution, Airbnb, airline deregulation, Andrei Shleifer, anti-communist, assortative mating, autonomous vehicles, bank run, banking crisis, banks create money, basic income, Berlin Wall, Bob Noyce, Branko Milanovic, Bretton Woods, British Empire, business cycle, call centre, capital controls, carbon footprint, Carmen Reinhart, Celtic Tiger, central bank independence, Charles Lindbergh, clean water, collective bargaining, Columbian Exchange, Columbine, Corn Laws, credit crunch, Credit Default Swap, crony capitalism, currency peg, debt deflation, Deng Xiaoping, discovery of the americas, Donald Trump, Erik Brynjolfsson, European colonialism, eurozone crisis, falling living standards, financial innovation, financial intermediation, floating exchange rates, Fractional reserve banking, Frederick Winslow Taylor, full employment, germ theory of disease, German hyperinflation, gig economy, Gini coefficient, global supply chain, global value chain, Gordon Gekko, greed is good, Haber-Bosch Process, Hans Rosling, Hernando de Soto, hydraulic fracturing, Ignaz Semmelweis: hand washing, income inequality, income per capita, indoor plumbing, industrial robot, inflation targeting, Isaac Newton, James Watt: steam engine, job automation, John Snow's cholera map, joint-stock company, joint-stock limited liability company, Kenneth Arrow, Kula ring, labour market flexibility, land reform, land tenure, Lao Tzu, large denomination, liquidity trap, Long Term Capital Management, Louis Blériot, low cost airline, low skilled workers, lump of labour, M-Pesa, Malcom McLean invented shipping containers, manufacturing employment, Marc Andreessen, Mark Zuckerberg, Martin Wolf, McJob, means of production, Mikhail Gorbachev, mittelstand, moral hazard, Murano, Venice glass, Myron Scholes, Nelson Mandela, Network effects, Northern Rock, oil shale / tar sands, oil shock, Paul Samuelson, popular capitalism, popular electronics, price stability, principal–agent problem, profit maximization, purchasing power parity, quantitative easing, railway mania, Ralph Nader, regulatory arbitrage, road to serfdom, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, savings glut, Scramble for Africa, Second Machine Age, secular stagnation, Silicon Valley, Simon Kuznets, South China Sea, South Sea Bubble, special drawing rights, spice trade, spinning jenny, Steven Pinker, TaskRabbit, Thales and the olive presses, Thales of Miletus, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Malthus, Thorstein Veblen, trade route, transaction costs, transatlantic slave trade, transcontinental railway, Triangle Shirtwaist Factory, universal basic income, Unsafe at Any Speed, Upton Sinclair, V2 rocket, Veblen good, War on Poverty, Washington Consensus, Watson beat the top human players on Jeopardy!, women in the workforce, Yom Kippur War, zero-sum game

In 2007, the three largest banks in the world were all European.24 When the crisis hit, European central banks and governments rushed to bail out their domestic banking sectors with cheap loans, share purchases, and the like. The effect was to take on to the national balance sheet debts that had previously been borne by the private sector. Between 2007 and 2013, the ratio of government debt to GDP in the euro zone rose from 66% to 93%.25 In some cases, the burden was too great. Ireland was dubbed the “Celtic Tiger” in the 1990s, and enjoyed a property boom, financed by its domestic banks, in the 2000s. When the banks collapsed in 2008 and 2009, the bill was two-fifths of the country’s GDP. A recession then cost Ireland more than 11% of its output. As tax revenues slumped, government debt soared, reaching a peak of 120% of GDP. A bailout by the EU and the IMF was required in 2011.26 Things were even worse in Greece.


pages: 614 words: 174,226

The Economists' Hour: How the False Prophets of Free Markets Fractured Our Society by Binyamin Appelbaum

"Robert Solow", airline deregulation, Alvin Roth, Andrei Shleifer, anti-communist, battle of ideas, Benoit Mandelbrot, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business cycle, capital controls, Carmen Reinhart, Cass Sunstein, Celtic Tiger, central bank independence, clean water, collective bargaining, Corn Laws, correlation does not imply causation, Credit Default Swap, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, desegregation, Diane Coyle, Donald Trump, ending welfare as we know it, financial deregulation, financial innovation, fixed income, floating exchange rates, full employment, George Akerlof, George Gilder, Gini coefficient, greed is good, Growth in a Time of Debt, income inequality, income per capita, index fund, inflation targeting, invisible hand, Isaac Newton, Jean Tirole, John Markoff, Kenneth Arrow, Kenneth Rogoff, land reform, Long Term Capital Management, low cost airline, manufacturing employment, means of production, Menlo Park, minimum wage unemployment, Mohammed Bouazizi, money market fund, Mont Pelerin Society, Network effects, new economy, oil shock, Paul Samuelson, Philip Mirowski, plutocrats, Plutocrats, price stability, profit motive, Ralph Nader, RAND corporation, rent control, rent-seeking, Richard Thaler, road to serfdom, Robert Bork, Robert Gordon, Ronald Coase, Ronald Reagan, Sam Peltzman, Silicon Valley, Simon Kuznets, starchitect, Steve Jobs, supply-chain management, The Chicago School, The Great Moderation, The Myth of the Rational Market, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, transaction costs, trickle-down economics, ultimatum game, Unsafe at Any Speed, urban renewal, War on Poverty, Washington Consensus

“Interview with Kenneth Baker,” Commanding Heights, September 19, 2000; available at pbs.org/wgbh/commandingheights/shared/minitext/int_kennethbaker.html. 89. Madsen Pirie, Privatization (Aldershot, Eng.: Wildwood House, 1988), 4. 90. Richard Green and Jonathan Haskel, “Seeking a Premier-League Economy,” in Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980–2000, ed. David Card et al. (Chicago: University of Chicago Press, 2004), 48–49. 91. Sean D. Barrett, “Exporting Deregulation: Alfred Kahn and the Celtic Tiger,” Review of Network Economics 7, no. 4 (2008). 92. The Civil Aeronautics Board, the U.S. regulator, had also proposed the criminalization of discounted airline tickets, in 1971. Congress declined to pursue the idea. 93. Ryan in 1971 hit on the idea of leasing Aer Lingus planes and crew to airlines in other countries during the winter months, when fewer people wanted to visit Ireland. Four years later, he went into the leasing business on his own.


EuroTragedy: A Drama in Nine Acts by Ashoka Mody

"Robert Solow", Andrei Shleifer, asset-backed security, availability heuristic, bank run, banking crisis, Basel III, Berlin Wall, book scanning, Bretton Woods, call centre, capital controls, Carmen Reinhart, Celtic Tiger, central bank independence, centre right, credit crunch, Daniel Kahneman / Amos Tversky, debt deflation, Donald Trump, eurozone crisis, Fall of the Berlin Wall, financial intermediation, floating exchange rates, forward guidance, George Akerlof, German hyperinflation, global supply chain, global value chain, hiring and firing, Home mortgage interest deduction, income inequality, inflation targeting, Irish property bubble, Isaac Newton, job automation, Johann Wolfgang von Goethe, Johannes Kepler, Kenneth Rogoff, Kickstarter, liberal capitalism, light touch regulation, liquidity trap, loadsamoney, London Interbank Offered Rate, Long Term Capital Management, low-wage service sector, Mikhail Gorbachev, mittelstand, money market fund, moral hazard, mortgage tax deduction, neoliberal agenda, offshore financial centre, oil shock, open borders, pension reform, premature optimization, price stability, purchasing power parity, quantitative easing, rent-seeking, Republic of Letters, Robert Gordon, Robert Shiller, Robert Shiller, short selling, Silicon Valley, The Great Moderation, The Rise and Fall of American Growth, too big to fail, total factor productivity, trade liberalization, transaction costs, urban renewal, working-age population, Yogi Berra

Even as domestic demand in Germany remained “dormant,” the growth of exports picked up, and the IMF projected that the German economy, which had contracted in 2003, would grow by 2 percent in 2004.3 In Ireland, the property price boom continued unabated, and while Irish manufacturing jobs did begin moving to lower-​wage Eastern European countries, US multinationals—​with their long-​standing presence in Ireland—​egged on the Celtic tiger. Only Italy seemed stuck in its economic and psychological rut. Suddenly, it seemed as if a new window was opening up for the eurozone to finally demonstrate its potential and deliver on its promises of economic prosperity, stability, and European harmony. In the eurozone’s first five years, poor economic performance and national anxieties had given rise to assertive nationalism. A return to steady economic growth would dampen financial anxieties, which would, perhaps, kindle greater empathy for other Europeans and stir greater willingness to practice solidarity.