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The Irish Banking Crisis

Author

Listed:
  • Arthur L. Centonze

Abstract

The 2007 financial crisis led to a steep decline in the supply of capital to organizations around the world. As liquidity dried up, countries such as Ireland with fragile and overextended credit environments, overpriced asset markets, and accommodative regulatory systems were vulnerable to the resulting shock waves. This case explores Ireland’s economic and financial circumstances before and during the crisis, and its response to the crisis in the face of mounting pressure from the European Commission, the European Central Bank and the IMF for action that would help bring Ireland and other stressed euro zone countries back from the brink. At the close of 2010, Minister for Finance Brian Lenihan Jr. needed to decide whether to accept financial assistance from Europe and the IMF or have Ireland go it alone. The case has a difficulty level appropriate for masters’ level or upper level bachelors’ students in finance or economics. It is most effectively taught to students who have been exposed to macroeconomics and introductory finance. The case is designed to be taught in 1.5-2 class hours and should require 2-4 hours of outside preparation by students.

Suggested Citation

  • Arthur L. Centonze, 2014. "The Irish Banking Crisis," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 5(2), pages 85-108.
  • Handle: RePEc:ibf:rbfstu:v:5:y:2014:i:2:p:85-108
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    File URL: http://www.theibfr2.com/RePEc/ibf/rbfstu/rbfs-v5n2-2014/RBFS-V5N2-2014-9.pdf
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    References listed on IDEAS

    as
    1. Honohan, Patrick & Donovan, Donal & Gorecki, Paul & Mottiar, Rafique, 2010. "The Irish Banking Crisis: Regulatory and Financial Stability Policy," MPRA Paper 24896, University Library of Munich, Germany.
    2. Morgan Kelly, 2009. "The Irish Credit Bubble," Working Papers 200950, Geary Institute, University College Dublin.
    3. George Soros, 1999. "The International Financial Crisis," Challenge, Taylor & Francis Journals, vol. 42(2), pages 58-76, March.
    4. Ms. Srobona Mitra & Mrs. Elena H Duggar, 2007. "External Linkages and Contagion Risk in Irish Banks," IMF Working Papers 2007/044, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Yu Hsing, 2016. "Is Real Depreciation Expansionary? The Case of Ireland," Bulletin of Applied Economics, Risk Market Journals, vol. 3(1), pages 1-9.

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    More about this item

    Keywords

    Financial Crisis; Property Bubble; Banking Crisis; Government Policy;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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