To Paul Krugman’s recent posts on Ireland and the Baltics, I would add two points.
1. Ireland’s quarterly GDP data are notoriously volatile.
2. Ireland is a small, open economy, and it is by common consent a relatively flexible economy. It is also an economy in which labour is both inwardly and outwardly mobile. And yet unemployment here is now running at 14.5%. So do we really think that the Irish experience can be used to argue that the austerity/internal devaluation medicine is appropriate for countries like Greece or Italy?