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Tied Up With a Black Velvet Band:

Tied Up With a Black Velvet Band: Will Immigration and Foreign Investment Strangle Ireland’s Economy?. Recent Macroeconomic Trends. Growth in GDP Unemployment Immigration Inflation Fiscal Policy. i. LM. 2. BP. 1. i. IS 2. IS. Y. Y. Recent Macroeconomic Trends. Growth in GDP

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Tied Up With a Black Velvet Band:

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  1. Tied Up With a Black Velvet Band: Will Immigration and Foreign Investment Strangle Ireland’s Economy?

  2. Recent Macroeconomic Trends • Growth in GDP • Unemployment • Immigration • Inflation • Fiscal Policy

  3. i LM 2 BP 1 i IS2 IS Y Y

  4. Recent Macroeconomic Trends • Growth in GDP • Unemployment • Immigration • Inflation • Fiscal Policy • Monetary Policy

  5. i LM LM2 BP i3 3 1 i1 IS2 i2 2 IS Y Y1 Y2 Y3

  6. Vulnerabilities GDP > GNI Short-Run • GDP vs. GNI • Low corporate taxes sparked investment • Unemployment decreased

  7. Vulnerabilities GDP > GNI Long-Run • Irish rarely benefit from highest-paid positions • Foreign investment stagnates

  8. Vulnerabilities Immigration Short-Run • Sign of robust economy • Current growth can support foreign workers

  9. Vulnerabilities Immigration Long-Run • Lag time between foreign investment and immigration • Increased immigration decreases capital per worker ratio and overall output

  10. y n2 + g + d n + g + d f(y) y1 y2 sy2 sy k k2 k1 =3

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