The Irish Economic Boom: What Can We Learn?

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Abstract

This article examines the factors behind Ireland’s exceptional economic performance in the 1990s, during which real GDP per capita nearly doubled. It finds that Ireland’s recent boom reflects a long-term productivity trend spanning 25 years combined with an acceleration in employment rate growth, not a productivity acceleration. Policy lessons drawn include: support free trade and investment, develop business-friendly industrial and tax policies, maintain free or low-cost secondary and post-secondary education, and ensure aggregate supply can accommodate non-inflationary demand expansion.

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