SSISI Talk: The Dynamics of Ireland’s Net External Position
This post was written by Philip Lane
I will talk on this topic on Thursday at 6pm at the Royal Irish Academy.
Update: I will post the paper and slides early next week.
Ireland’s net external liability position expanded in dramatic fashion during 2008- 2010, despite relatively small net financial flow during this period. Understanding the the source and persistence of this negative shock is critically important in as- sessing the future path for the Irish economy but data analysis is made difficult by the confounding impact of Ireland’s major role as an international financial centre, such that the “core” international balance sheet remains obscure. However, there is considerable indirect evidence to believe that a substantial component of this decline is genuine and relates to the internationally-leveraged structure of the financial port- folios of domestic Irish residents.