The Irish Financial Crisis Was Both Predictable and Preventable. to What Extent Do You Agree with This Statement?
Irish Financial Crisis has attracted much attention recently. Driven by booms in property and lending, it left the society with massive issues such as high unemployment, insolvent banks and huge government deficit(Kelly, 2010, P1). There are many debate surrounding on whether the crisis could be predicted and prevented. This essay will attempt to demonstrate that Irish Financial Crisis was both predictable and preventable. It will first state that Irish Financial Crisis was predictable through the observation of its abnormal economic growth mode and the soared property prices. Then it will turn to argue that the crisis was preventable. This essay will try to analyse theoretical and practical facts were provided as experience to prevent the crisis..
There has been considerable debate surrounding whether Irish Financial Crisis is predictable or not. Those who support the Irish Financial Crisis could not be identified in advance emphasis it is irregular and uncertain. During the period from 1990 to 2007, Irish economy experienced a continuous and steady increase, with GNP growing by 5 to 15 per cent every year and the rising of employment and competitiveness significantly, Ireland went from being extremely poor to being extremely rich. According to Kelly (2010 ,P2), among this period, the Ireland’s economy really was among the best performing in the world. However, Irish economy finally collapsed overnight in late September 2008. Some people argue that there is no relevant evidence reveals Ireland’s economy is lifting off and will hits the bottom suddenly. Base on this view, it can clearly be seen that Irish economy collapse could be occasional and random event.
However, the opponents focus on the uncommon pattern of Irish economy growth and the surged property prices . For years, sensible economists had been warning that the euro’s one-size-fits-all interest rates and monetary policy would trigger uncontrollable bubbles in high growth countries( Health, 2010).
There has been considerable debate surrounding whether Irish Financial Crisis is predictable or not. Those who support the Irish Financial Crisis could not be identified in advance emphasis it is irregular and uncertain. During the period from 1990 to 2007, Irish economy experienced a continuous and steady increase, with GNP growing by 5 to 15 per cent every year and the rising of employment and competitiveness significantly, Ireland went from being extremely poor to being extremely rich. According to Kelly (2010 ,P2), among this period, the Ireland’s economy really was among the best performing in the world. However, Irish economy finally collapsed overnight in late September 2008. Some people argue that there is no relevant evidence reveals Ireland’s economy is lifting off and will hits the bottom suddenly. Base on this view, it can clearly be seen that Irish economy collapse could be occasional and random event.
However, the opponents focus on the uncommon pattern of Irish economy growth and the surged property prices . For years, sensible economists had been warning that the euro’s one-size-fits-all interest rates and monetary policy would trigger uncontrollable bubbles in high growth countries( Health, 2010).