Interpretations of the Irish economic crash
in Ireland under austerity
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The mainstream economists argue that the underlying model of the Irish economy that preceded the crash was fundamentally sound. This was based on attracting foreign direct investment by identifying the areas where Ireland had a comparative advantage. The mainstream view in Irish economics is well represented in a special issue of World Economy which contained articles written by prominent figures such as John Fitzgerald, John McHale, and Philip Lane. The mainstream of the Irish economics profession has developed close connections with the Irish political elite and have provided an intellectual framework to justify its austerity policies. Keynesianism has been effectively marginalised within Irish academic economics as a practical policy for dealing with the crash. Keynesians reject the idea of a self-regulating market and, in the Irish context, point to the role of neo-liberal ideas in promoting a 'light touch' regulation which caused the economic crash.

Ireland under austerity

Neoliberal crisis, neoliberal solutions

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