BARCAP: An EU/IMF Programme Could End the Irish Crisis

Antonio Garcia Pascual and Piero Ghezzi explain how a combination of a bank restructuring/recapitalisation fund and a line of credit for the sovereign can stabilise the Irish situation in this report.

Note:  In relation to the discussion of the Goldman Sachs report (and presumably similar comments can be made about this report from Barclays Capital), it is certainly sensible to be aware of potential institutional biases. However, the individual economists working at these types of institutions are typically top quality (PhDs from top-level universities, strong academic publication records and/or experience in policy organisations) and, beyond any institutional pressures, have powerful individual career incentives to maintain a reputation for high-quality macroeconomic analysis.