In case you can’t wait for blogger PH’s rivetting radio lecture: “The Financial Crisis: Ireland and The World” (recorded yesterday before a live audience but not being transmitted until St Stephens Day), you can get the text here.
It’s mostly an interpretation of the causes of — and policy reaction to — the global crisis, and corrects several common fallacies or half-truths.
The Ireland-relevant take-away: Our banking problems were caused by globalization…but not in the way you may think.
It was the fall in interest rates on euro adoption that triggered much of the bubble; easy access to international funding that fuelled it.
(Irish banks’ net foreign borrowing 2003-7 amounted to 50 per cent of GDP; Icelandic banks didn’t do any net foreign borrowing!).