ECB to publish TARGET balances


September 17th, 2015

Details here.

New York Times: A Migration Juggernaut is Headed for Europe


September 16th, 2015

Eduardo Porter, one of the most highly respected economic analysts in the US media, has an interesting, thoughtful new article on European immigration pressures. He argues that European economies and societies need to prepare for large-scale immigration from Africa, the Middle East, and South Asia. These regions are close to Europe, are notably poor by world standards, and have a forecast population increase of three billion in coming decades, on top of the large increases which have already occurred in the recent past. Porter argues that attempts to stop completely this migration pressure will not succeed, and instead Europe should try to adjust to an inevitable large inflow.

The fiscal impact of financial sector support during the crisis


September 16th, 2015

ECB bulletin article – here.

OECD Economic Survey: Ireland


September 15th, 2015


The State of the House Price Cycle in the Euro Area


September 15th, 2015

ECB bulletin article here.

Bailed Out!


September 15th, 2015

The new Fishamble play by Colin Murphy is on during the Festival – details here.


BPEA Fall 2015: Papers on Portugal and Greece


September 11th, 2015

Ricardo Reis assesses adjustment in Portugal;  there is also an array of papers on the Greek crisis.

Papers here.

Update:   The discussion slides by Kevin O’Rourke for the Reis paper are available here.

Dublin Economics Workshop Conference – Final Call


September 9th, 2015

The Dublin Economics Workshop will hold its annual economic policy conference at the Hodson Bay Hotel in Athlone on October 16th and 17th next. Some slots are still available and proposals in any area of economic policy are welcome. They should be forwarded as soon as possible to

Programme and booking details will be circulated shortly.

The Dublin Economics Workshop is kindly sponsored by Dublin Chamber of Commerce.

Fiscal Tightening and Economic Growth


September 9th, 2015

A detailed analysis of cross-country covariation patterns is available in the PIIE report by Paolo Mauro and Jan Zilinsky here.

The Eurozone Crisis: A Consensus View of the Causes and a Few Possible Solutions


September 8th, 2015

There is a new VOXEU ebook with contributions on this topic – here.  (My contribution is on “International financial flows and the Eurozone crisis”.)

The Fiscal Council has a vacancy for an economist


September 3rd, 2015

The Irish Fiscal Advisory Council has a vacancy for an economist, details are here. Closing date is the 16th of September.

Review of Leaving Certificate Economics


September 2nd, 2015

Drs Aedin Doris, Kevin Denny and I wrote a response to the consultation paper on the review of leaving cert economics for the Irish Economic Association.

The consultation paper is here (.pdf). The response is here (.pdf). 

Save the Date: September 30 Conference on Higher Education Funding in Maynooth


September 1st, 2015

On Wednesday, September 30, we are holding a one-day conference on ‘Higher Education Funding: Drawing on the International Experience’ in Maynooth.

The context for this conference is the debate on how to fund higher education in Ireland. In 2014, the Minister for Education established an Expert Group on Future Funding for Higher Education, and the motivation for the conference is to inform the discussion about the choice of funding options available; we have a particular interest in the interaction between funding mechanisms and differential access to higher education along socioeconomic lines.

International speakers include Sara Goldrick-Rab of the University of Wisconsin-Madison, who has written extensively on the issue of higher education funding in the US; Claire Crawford of Warwick University and the IFS, who has written several detailed analyses of the UK system; and Bruce Chapman of the Australian National University, whose name is particularly associated with income-contingent student loans, both in terms of his academic research and his role as policy advisor to many governments.

Local speakers include Rory O’Donnell of NESC and Delma Byrne of Maynooth University.

The conference will be open to all. I’ll post further details here in the coming weeks.

Update: Full details are now available here.

Controlling the Health budget: Annual budget implementation in the public health area


August 28th, 2015

IFAC have a new analytical note on this topic: here.

Insider or Outsider? Bloomberg article on Honohan succession


August 28th, 2015

There is a brief article in Bloomberg Business today about the search for a new Irish Central Bank governor.

“Ireland is about to deliver evidence on whether, nearly two years after regaining its economic sovereignty, much has really changed. ……   Noonan’s dilemma now is whether to move back to the pre-crisis mode of finding a governor from inside the civil service, or repeat the Honohan recipe and appoint another outsider.”

The Paddy Power betting odds are discussed. As a financial economist, I am forbidden by the Efficient Market Theory from making gambling bets, but perhaps some of the labour/macro economists might want to take a punt.

I had an earlier post on the strategic issues around this appointment. The recent China-related volatility in financial markets is the latest difficult policy problem confronting monetary authorities in Europe and globally. Ireland should appoint someone as governor who can serve both domestically and also contribute to ECB council deliberations.

Since some readers will know some of the people mentioned personally, I blocked the comments feature.


China: Growth and Debt (Geneva Report on Deleveraging)


August 25th, 2015

The China section in the 2014 Geneva Report provides some guidance in relation to the current debate – here.

See also NYT article here.

Don’t blame German banks for the Irish economic crisis


August 18th, 2015

Derek Scally writes here.

Brexit and Ireland


August 9th, 2015

The election of the majority Conservative government in May meant that a referendum to decide whether Britain remains part of the EU became inevitable. A commitment to an “in-out” referendum on EU membership was provided in the May Queen’s Speech and it will likely go ahead in 2016 (or 2017 at the latest). Opinion polls show a split electorate. Risk aversion and other status quo factors should work in favour of the “stay” side. Bookies odds reflect this with at least one popular bookmaker placing the odds of a “leave” result at 3-1. In any case while the likeliest outcome at present is that Britain will remain in the EU, it is still a strong possibility they will leave and worth discussing in terms of implications for Britain and other countries. Germane to the title of this blog the implications for the Irish economy broadly are worth discussing.

In the draft national risk assessment published by the Taoiseach’s office earlier this year, Brexit is mentioned as follows:

“Following the general election in May, the British Government is likely to make proposals both on how the functioning of the EU could be improved and on how specific UK concerns about EU membership could be addressed, with the possibility of a UK referendum on EU membership. A fundamental change to the role of the UK in the EU, or a period of continuing uncertainty regarding the UK’s relationship with the EU, could present significant challenges for the EU as a whole and for Ireland in particular, especially in terms of (i) pursuit of Ireland’s objectives as a Member State as the UK is an important ally within the EU on negotiations on issues of mutual concern such as trade and the deepening of the single market; 24 (ii) bilateral relations with the UK, including the significant economic and trading relationship; and (iii) the impact on Northern Ireland issues and North/South relations.”

A number of questions come to mind in the prospect of Britain leaving the EU. I raise these purely for discussion and they are not ordered by any degree of likelihood or priority. In the event of a “leave” vote a number of alternative configurations might result including various forms of trade deal with the UK and EU members. (See here for one attempt to answer some of the economic questions below; Davy’s also released a piece on economic effects; NTMA piece on economic effects here; Alan Matthews on the implications for Irish agri-food).

a) What are the implications for border arrangements between Northern Ireland and the Republic of Ireland?

b) What are the implications for the status of UK citizens living in the Republic Ireland?

c) What are the implications for Irish citizens living in the United Kingdom?

d) Will the uncertainty surrounding the referendum affect currency volatility?

e) How will the uncertainty surrounding the referendum impact on FDI into Ireland? Does the prospect of a Brexit make Ireland a safer destination for some types of companies relative to the UK? In a “leave” scenario would Ireland be more attractive a destination than the UK for non-EU companies looking for access to the EU market?

f) How would a Brexit influence trade between Ireland and the rest of the EU?

g) What implications would Brexit have for the Scottish political situation and potential knock-on effects to the Irish economy?

h) What implications would it have for support for the EU in Ireland?

i) How would a “leave” result influence the Northern Irish economy?

j) Would a “leave” result limit mobility of Irish people to the UK?

k) What implications would a “leave” result have for wider political movements in Europe?

The small amount of publicly available analysis so far suggests the answer to most of the economic questions is that it would have a negative impact on the Irish economy largely coming through trade disruption. But it seems clear there is a lot of uncertainty in what a leave scenario would look like. As reported widely in the media there are now various groups in Ireland looking at these questions including in various state agencies and the Central Bank. It will be interesting to see this debate unfold.

A 14 year old who should be very proud of herself


August 5th, 2015

I find this story both extraordinary and inspiring.

Ms Fried’s article is published here.

A roadmap for reform of the euro zone


August 4th, 2015

I provide a brief discussion of the recent Five Presidents’ Report in this IT article – here.

J.A. Hobson on the Eurozone crisis (sort of)


August 3rd, 2015

Philippe Legrain points out that, far from creating the sort of European-level democratic space that would allow citizens to choose between political and economic alternatives, closer European political union is likely to place more even restraints on the power of politicians to respond to voters’  demands for alternative policies. This is because ever more rules proscribing what others can do, and made up by Germany, is what Germany wants (not that she has historically felt bound by rules when fundamental national interests are at stake, as inter alia the collapse of the EMS and the scrapping of the excessive deficit procedure inform us; and quite right too in my view).

But why does Germany want this?

Harold James has one view here.

And here is J.A. Hobson:

Moreover, while the manufacturer and trader are well content to trade with foreign nations, the tendency for investors to work towards the political annexation of countries which contain their more speculative investments is very powerful.


LTV and DTI Limits—Going Granular; From Systemic Banking Crises to Fiscal Costs: Risk Factors


August 2nd, 2015

More cross-country analysis by the IMF on the properties of LTV and DTI limits – here.

Also, new IMF work on the fiscal costs of systemic banking crises – here.

Macroprudential Regulation Conference: Change of Date


July 29th, 2015

The conference on macroprudential regulation originally scheduled for September 4th has been postponed to Friday, January 29th, 2016. See here for all details on the conference. A full programme will be provided closer to the date.

Famine in Ireland 1300 to 1900


July 27th, 2015

I posted earlier in the year on Cormac O’Grada’s recently published book on famines. He has also recently released, among several other works, a working paper on the history of Irish famines since 1300. A version is available here and provides a chronology and history of several Irish famines pre-dating the 1840s.



Guest post by Marios Zachariadis: On the Greek Crisis and German Imbalances


July 24th, 2015

Policies undertaken from a narrow national perspective that encourage systematic fiscal surpluses coupled with a national consensus on wage suppression between unions and industry facilitated by the state, impact negatively upon domestic spending while increasing national saving and may lead to mercantilist outcomes of systematic policy-induced positive trade balances with large financial flows going the other way. This mechanism in relation to export-dependent countries like Germany has been recognized for a while by leading American economists like Obstfeld (the IMF’s new chief economist succeeding Blanchard) or Bernanke, while many have also pointed out low domestic investment, consumption taxes, and rigidities in the service sector as additional policy-related reasons for this German systematic phenomenon. Read the rest of this entry »

Economists and the European democratic deficit


July 24th, 2015

I have a column in Critical Quarterly, available here.

Call for Proposals DEW Conference 2015


July 21st, 2015

The Dublin Economics Workshop will hold its annual economic policy conference at the Hodson Bay Hotel in Athlone October 16th and 17th next. Proposals in any area of economic policy are invited and should be forwarded, ideally before September 4th, to both of the following: and

Programme and booking details will be circulated in due course. The Dublin Economics Workshop is kindly sponsored by Dublin Chamber of Commerce.

More on Greece


July 21st, 2015

Colm McCarthy and I were up in front of the Oireachtas Finance Committee last week to talk about Greece.  I attach my speaking notes. (Colm’s were essentially as published in the Sunday Independent the other day). I think it’s fair to say that we both kicked to touch on Pat Rabbitte’s question as to what politically acceptable solution could have been pulled out of the hat. This is a question for the diplomats and politicians rather than economists.  The radicals and the establishment parties across Europe had manoeuvered each other so that they ended up painted not so much into a corner as up against an open 10th floor window.  Someone was going to be defenestrated.  And it was never going to be the strong.

Diary Date: Workshop on Well-Being and Recent Irish Economic History


July 19th, 2015

Kevin Denny and I are organising a half-day workshop to look at Changes in Well-being in Ireland over the last 10 to 15 years. Obviously this has been an eventful time in Ireland and we think it would be very useful at this stage to draw together what is known about the Irish case.  Our specific aim is to consider a  wide range of possible outcomes including physical and mental health as well as subjective well-being. Moreover we want to draw on a range of approaches from epidemiology, psychological medicine and the social sciences as well as different types of data. Our intention is to have  around 7 presentations with plenty of time for discussion. The event will be held in the UCD Geary Institute on Tuesday November 17th from 12pm to 4pm. A light lunch would be provided. Further details of the talks and how to register will be provided here in due course. Suggestions on the programme still welcome.

Economics, Psychology and Policy Meetings


July 15th, 2015

Since 2008 a number of us have organised an annual conference for people working at the interface of economics, psychology and related areas. Speakers have included international thought-leaders in this area including David Laibson, David Halpern, Robert Sugden, Arie Kapteyn, Ruth Byrne and John O’Doherty as well a diverse range of speakers from across economics, psychology and policy in Ireland and they have contributed to maintaining an active discussion of the potential for this area in Ireland. The next one will take place at the ESRI in Dublin on November 27th. At the previous session we agreed to organise some more adhoc meet-ups in between the events partly to disseminate new ideas and also with a view to establishing a more structured network in this area in Ireland. The first of these meetings takes place in Dublin on July 22nd organised by myself and Sean Gill. It will take place at 7pm sharp at the Roasted Brown coffee shop in Temple Bar. There will be 5 short presentations (to be listed here in the next couple of days) and some discussion about future events. Meet-ups around this area are now taking place in several cities including London and Sydney. I spoke at the Sydney event recently and it was extremely lively and led to several useful follow-ups. There are many people interested in this broad area in Dublin and Ireland more generally. This is intended to a broad forum and we welcome attendance and contribution from academics interested in exchanging ideas with a broad audience, people across different areas including students and people with business and policy interests in this area. For now we envisage the events being structured around short talks where a speaker describes briefly an idea they are working on or thinking about and potentially some suggestions for collaboration. Though there are many other event formats that could be considered. If you are attending please drop me an email at


Liam Delaney: Overview of behavioural economics, policy and business.

Michael Daly: Psychology, Self-Control and Policy

Sean Gill: Behavioural Economics and Health

Pete Lunn: Behavioural Economics and Regulation

Audience Contributions,

Q+A and Suggestions for Development of Network