Stabilization and Growth in the EC Periphery A Study of the Irish Economy

This book focuses on the stabilization and growth problems of Ireland, an archetypal peripheral member of the EC. In part I, a supply-side neo-Keynesian macro-econometric model is developed, which captures the stylised features of the economy: high dependence on multinational FDI; an open labour market with significant international migration flows; exposure to the world economy through trade; and public sector indebtedness. In part II, after a review of modern fiscal policy issues, a rational expectations version of the model is used to study a recent Irish fiscal contraction, and the results compared with conventional analysis. In part III, modern growth theory is reviewed and the model extended to explore the impact of EC Structural Funds (the Community Support Framework), with a focus on infrastructure and human capital projects. The clarity of presentation and technical detail make the work a useful source of reference for other EC peripheral developing economies.