Ireland Economic Crisis

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The Euro zone crisis has impacted many countries such as Ireland, Portugal, Italy, Spain and Greece. Many say the Euro zone crisis was triggered as a result of the initial Global Financial Crisis that started in the United States in 2008. However, these countries, and Ireland in particular, would not have been sent into a recession if their own economies and debt were in order. Ireland was the first state in the eurozone to declare tit’s entrance into a recession.. However, on November 29, 2010 the European Union, the International Monetary Fund and the Irish state agreed to a €85 billion rescue deal for Ireland, but there were certain policies Ireland had to implement in order to receive it. The question left to be answered is whether these policies and conditions have actually helped Ireland dispose of their financial hardships or at least recover to the point of economic and political stability. As of 2013, Ireland is on track to leave the bailout program in December.
The period of high economic growth rate in Ireland was between 1995 and 2002. It was named the period of the Celtic Tiger and it contained increasing productivity in Ireland, a very strong fiscal position of the Irish state was a low unemployment rate fell of around 4% “("Ireland's Economic Crisis: How Did It Happen and What Is Being Done about It?"). However, not long after, from 2002 onwards, the boom Ireland was experiencing had begun to shift. Initially triggered by the global financial crisis of 2008, Ireland was in trouble. For example, “labor productivity was no longer increasing, inflation was high and growth in GDP became related to the housing market” ("Ireland's Economic Crisis: How Did It Happen and What Is Being Done about It?"). While at this poin...

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