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Ireland 2007

Ireland 2007. Troy Carpenter, Cody Hultman, Wendiam Sawadgo, Hannah Bochsler. Irish Government. A sovereign state with a constitutional republic Separation of power President: Michael D. Higgins. Regional Government.

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Ireland 2007

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  1. Ireland 2007 Troy Carpenter, Cody Hultman, Wendiam Sawadgo, Hannah Bochsler

  2. Irish Government • A sovereign state with a constitutional republic • Separation of power • President: Michael D. Higgins

  3. Regional Government • Under the federal government there are regional governments much like the United States

  4. Central Bank of Ireland • Became a unified body in 2010 • Member of the European Central Bank

  5. European Central Bank • Conducts monetary policy for the Eurozone • Maintain price stability within Eurozone at 2% inflation

  6. Policy Makers • Executive board determines the actions of the ECU

  7. Causes of the Recession • Mid 1990’s to early 2000’s: Ireland was “catching up” to the rest of the EU • Mid 2000’s to 2007: Ireland experienced strong economic growth • Property prices rise four-fold between 1997-2007

  8. Property Bubble • Supported by a surge in bank lending • Banks traditionally relied on their deposit base to fund lending activity • Increase in risk

  9. Housing prices http://www.esri.ie/irish_economy/

  10. Comparison to US/UK

  11. Property Bubble Burst • Increasingly risky lending practices proved highly damaging • Fraction of non-financial private-sector lending, that went to property sector, rose from 60% to 80% • Domestic spending falls by almost 30%

  12. http://ec.europa.eu/ireland/economy/irelands_economic_crisis/index_en.htmhttp://ec.europa.eu/ireland/economy/irelands_economic_crisis/index_en.htm

  13. Government Receipts vs. Expenditure http://www.esri.ie/irish_economy/

  14. GDP/GNP Growth http://www.esri.ie/irish_economy/

  15. Bank Loan Performance The World Bank

  16. Unemployment The World Bank

  17. Inflation/Deflation The World Bank

  18. Inflation/Unemployment

  19. Unemployment levels

  20. Government Debt The World Bank

  21. Exchange Rate The World Bank

  22. Stock Market

  23. Reforms by Government • Nov 29, 2010 Ireland negotiated a financial assistance package of 85 billion Euros • 17.5 Billion came from Irelands own resources • Creation of Central Bank of Ireland • Deals with financial regulation and central banking practices

  24. Banking Sector Reforms • Two universal pillar banks were created from the country’s two largest banks • To compete with each other, and any banks operating in Ireland • Multiple new supervisory frameworks put in place at the bank, regulatory, and state level • Retail vs. Wholesale bank systems • Risk experts regulation panel

  25. Fiscal Consolidation • Support economic growth through competitiveness • Contain the increase in government debt • Restore expenditures and taxation to more sustainable levels • 2009-2010 consolidation was mainly permanent budget cuts

  26. Structural Reforms • Strengthening the income tax base • Reduction of unemployment and welfare benefits

  27. Works Cited n.d. Central Bank of Ireland. Accessed April 16, 2014. http://www.centralbank.ie/Pages/home.aspx. n.d. European Central Bank: The Executive Board. Accessed April 16, 2014.http://www.ecb.europa.eu/ecb/orga/decisions/eb/html/index.en.html. 2012. Ireland's economic crisis: how did it happen and what is being done about it? February 22. Accessed April 16, 2014. http://ec.europa.eu/ireland/economy/irelands_economic_crisis/index_en.htm. n.d. Irish Economy. Accessed April 16, 2014. http://www.esri.ie/irish_economy/. Lane, Philip. n.d. The Irish Crisis. Accessed April 16, 2014. http://www.worldfinancialreview.com/?p=874. Organisation for Economic Co‑operation and Development. 15 October 2011. 22 April 2014. White, Timothy. 2010. "Celtic Collapse, or Celtic Correction?" New Hibernia Review 27-43.

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