Ireland: The case for an adaptive approach to macromanagement
Ireland’s willingness to put in place policies to bolster competitiveness and take advantage of trade and financial globalisation contributed to rapid real convergence over the two decades leading up to the global crisis. But in part because of the speed of catch-up, there was much less done to protect against the economy’s increasing vulnerability to downturns in trade and financial globalisation. The economy is entering its fifth year of recovery but challenges to the business model remain. The case for development of a long term policy package aimed at smoothing cycles is strong.