European Central Bank and Celtic Tiger Research Paper

European Central Bank and Celtic Tiger
Investigates if the European Central Bank (ECB) burst the Celtic Tiger bubble, the phenomenal growth of the Irish economy.
# 147358 | 6,320 words | 17 sources | APA | 2010 | IE
Published on Mar 27, 2011 in Economics (Econometrics) , Economics (Macro) , Economics (Micro) , Economics (National)

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This paper is a heterodox assessment on the impact of artificially low interest rates by the European Central Bank (ECB) on the Irish behavioral microeconomic decision-making process of individual time preferences within the Austrian-school capital-based macroeconomic business cycle. Using secondary research, the author focuses on empirical evidence showing the impact of the ECB on the Irish property and equity bubble. The paper argues that simplification of a discounted utility model would have a greater impact on understanding the Irish economy because, despite the greatest expertise in the world, humans are still prone to the curse of too much knowledge and cognitive dissonance. The paper includes many figures and an extensive appendix.

Table of Contents:
Literature Review
Description and Discussion
Behavioral Microeconomics
Austrian School of Macroeconomics Business Cycle
Appendix Index:Quantitative Economic Data and Statistics of Ireland
Appendix A: Referenced in Project
Appendix B: Economic Output andGrowth
Appendix C: Balance of Payments, International Trade & Comparisons
Appendix D: Production & Construction Industries
Appendix E: Earnings & Competitiveness & Labor Force
Appendix F: Consumption & Debt

From the Paper:

"A temporal point outside the frontier was created. This would allow resources be allocated for massive investment and consumption. The country was dangerously overheating. Unemployment was at an extreme minimum and hours worked surged. Imports temporarily increased to satisfy scarcities, but more importantly the gap between the twp equilibriums of saving and investing was facilitated by extreme levels of fractional reserve banking ratios as money flowed in from Europe. Ireland's external debt soared to almost E2 Trillion (including IFSC International Financial Sector)."

Sample of Sources Used:

  • Central Bank of Ireland
  • Central Statistics Office of Ireland
  • De Meza, D; Busch, B I; Reyniers, D; 2008. Financial Capability: A Behavioural Economics Perspective; Financial Services Authority.Department of Finance Ireland
  • Edeling, R. 1996. The Austrian Theory of the Trade Cycle. Editor
  • European Central Bank, 2010. Monetary Policy Decisions.

Cite this Research Paper:

APA Format

European Central Bank and Celtic Tiger (2011, March 27) Retrieved January 30, 2023, from

MLA Format

"European Central Bank and Celtic Tiger" 27 March 2011. Web. 30 January. 2023. <>