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Global Financial Crisis by Noah Berlatsky
accounting loophole / creative accounting, asset-backed security, banking crisis, Bretton Woods, capital controls, Celtic Tiger, centre right, circulation of elites, collapse of Lehman Brothers, collateralized debt obligation, corporate raider, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, deindustrialization, Doha Development Round, energy security, eurozone crisis, financial innovation, Food sovereignty, George Akerlof, God and Mammon, Gordon Gekko, housing crisis, illegal immigration, income inequality, market bubble, market fundamentalism, mass immigration, moral hazard, new economy, Northern Rock, purchasing power parity, quantitative easing, race to the bottom, regulatory arbitrage, reserve currency, Robert Shiller, Robert Shiller, Ronald Reagan, shareholder value, South China Sea, structural adjustment programs, too big to fail, trade liberalization, transfer pricing, working poor
The Spanish government is still essentially in denial about the scale of the correction needed and has been busy trying to spend its way out of trouble, with the predictable negative consequence that the country’s once solid ﬁscal surplus is now spiraling downward into deﬁcit at breathtaking speed. Indeed, the European Commission (EC) has already initiated an excess deﬁcit procedure against Spain. As for Ireland, it was not so long ago that the country’s economy was experiencing a boom of such proportions that it came to be known as the “Celtic Tiger.” Now, the tiger is tanking. The EC forecasts a 5 percent contraction in GDP this year; unemployment is widely expected to hit 11 percent; and house prices have plummeted. As a result, the Irish ﬁscal deﬁcit is expected to rise to 9.4 percent in 2009. Again, the EC has opened an excess deﬁcit procedure, and the country is being threatened with losing its AAA debt rating [its debt will be considered less safe, or less likely to be repaid]. 94 Effects of the Global Financial Crisis on Wealthier Nations The Crisis in Eastern Europe and Scandinavia The EU’s [European Union’s] most recent members are also feeling the chilly winds of recession.
., 16–17, 32, 34, 38–39 real estate, world, 18, 87, 209– 210 stock market, 41, 87 technology economy, 56–57 Building industry economic growth contributions, 34 slowdowns, 131, 133 Bulgaria, 95, 98, 99 Bunning, Jim, 202 Business failures, 19 Business subsidies, 201, 202–206 “Buy American” provisions, stimulus plans, 181–182 C Cable, Vince, 42–52 Calderón, Felipe, 182 California, homelessness, 75, 76–77 Campaign contributions, 201, 206 Canada, 80–84 Canada Mortgage and Housing Corporation, 82 Capital ratios, 103, 216–217, 221, 227 Caribbean, 160–161 Carmody, Sean, 85–91 Cash. See Liquidity crises Cato Institute, 202–203 “Celtic Tiger” phenomenon, 94 Charitable agencies, 76–77, 123– 124, 137 Chauzy, Jean-Philippe, 133–134 Chávez, Hugo, 184 Index Chile, 161–162 China, 22–26, 65–71, 108–120, 135–142, 143–149 blames U.S. policies for crisis, 22–26 could use crisis to become responsible world power, 143–149 crisis may worsen poverty, 135–142 economic growth and success, 136–137, 144, 145 G-20 role, 145, 146 investment, U.S., 18, 24, 144, 147 migrant workers, 110, 116, 130 must join with U.S. to control crisis, 65–71 stimulus packages, 19, 135, 140, 141–142, 144–145 trade with Africa, 195 trade with U.S., 65, 66, 70–71, 144, 147 unrest, 19, 25, 108–120, 139– 140 Clearinghouse regulations, 49–50 Climate change policy, 26, 163 Collateralized debt obligations (CDOs), 50, 88 Colombia, 161–162, 180, 182, 183, 184 Common Cause, 205–206 Communist Party, China, 110, 114–116, 139–140 Comparative advantage, 192–193 Competitiveness, ﬁnancial, 48–49 Congress business subsidies, 202, 203, 204, 205–206 hearings, 175 predatory lending, 206 protectionism and trade agreements, 181, 182, 184 Construction industry, 34, 130, 131, 133 Consumer conﬁdence, 63, 91, 100, 208, 213, 216 Corporate welfare, 201, 202–206 See also Bailouts Cox, Pamela, 158–159 Credit default swaps (CDSs), 17, 28, 29, 50, 175–176, 215 Credit derivatives.
Unhappy Union by The Economist, La Guardia, Anton, Peet, John
bank run, banking crisis, Berlin Wall, Bretton Woods, capital controls, Celtic Tiger, central bank independence, centre right, collapse of Lehman Brothers, credit crunch, Credit Default Swap, debt deflation, Doha Development Round, eurozone crisis, Fall of the Berlin Wall, fixed income, Flash crash, illegal immigration, labour market flexibility, labour mobility, light touch regulation, market fundamentalism, moral hazard, Northern Rock, oil shock, open economy, pension reform, price stability, quantitative easing, special drawing rights, supply-chain management, The Great Moderation, too big to fail, transaction costs, éminence grise
Too few questioned whether buoyant tax revenues might not just be a windfall from a property bubble. When it burst, they would collapse and spending would shoot up to pay for unemployed construction workers. Ireland’s net exports were booming even as it was overheating, but Spain’s were shrinking. Over two decades, Ireland had gone from being the poorest EU country to being one of the richest. But while the Celtic Tiger put on real muscle in the early years, boosting productivity by turning itself into an export base for multinationals, later it just gorged itself on cheap credit. Among the laggards, Germany’s sickliness masked a process of protracted reform, especially Gerhard Schröder’s Agenda 2010 labour-market and welfare changes, pushed through after 2003. Germany was still digesting the cost of absorbing the former East Germany, and had entered the euro with an overvalued currency.
., Making the European Monetary Union, Harvard University Press, 2012 Legrain, P., European Spring: Why Our Economics and Politics are in a Mess – and How to Put Them Right, CB Books (Amazon), 2014 Marsh, D., Europe’s Deadlock, Yale University Press, 2013 Marsh, D., The Euro: the Battle for a New Global Currency, Yale University Press, updated 2011 O’Toole, F., Ship of Fools: How Stupidity and Corruption Sank the Celtic Tiger, Faber and Faber, 2009 Pisani-Ferry, J., The Euro Crisis and its Aftermath, Oxford University Press, 2014 Panagiotarea, E., Greece in the Euro, ECPR Press, 2013 Pryce, V., Greekonomics, Biteback, updated 2013 Soros, G., The Tragedy of the European Union, Public Affairs, 2014 Tsoukalis, L. and Emmanouilidis, J. (eds), The Delphic Oracle on Europe, Oxford University Press, 2011 Tsoukalis, L., The Unhappy State of the European Union, Policy Network, March 2014 Van Middelaar, L., The Passage to Europe, Yale University Press, 2013 Appendix 4 How The Economist saw it at the time May 1st–7th 2010 July 10th–16th 2010 November 20th–26th 2010 December 4th–10th 2010 January 15th–21st 2011 March 12th-18th 2011 June 11th-17th 2011 June 25th-July 1st 2011 October 29th-November 4th 2011 November 5th-11th 2011 November 12th-18th 2011 November 26th-December 2nd 2011 February 18th–24th 2012 March 31st–April 6th 2012 May 19th–25th 2012 May 26th-June 1st 2012 July 28th-August 3rd 2012 August 11th-17th 2012 November 17th-23rd 2012 March 23rd-29th 2013 May 25th–31st 2013 September 14th–20th 2013 October 26th-November 1st 2013 January 4th-10th 2014 Index 1974–75 global recession 10 A accession treaties 112 accountability 125–129, 162 Alliance of Liberals and Democrats for Europe (ALDE) 130–131 Alogoskoufis, George 42 Amsterdam treaty 111–112, 193 Anastasiades, Nicos 2, 86–88 Anglo Irish Bank 53 Ansip, Anders 104 Arab spring 145–146 Argentina 5, 50 Armenia 149 Ashton, Catherine 28, 43, 144 Asmussen, Jörg 51, 82 Austria 111, 127 influence 108 interest rates 93 Azerbaijan 149 Aznar, José Maria 17 B Bagehot, Walter 9 bail-in rules 83, 90–91, 165 see also Cyprus bail-outs national approval requirement 127 no-bail-out rule 45, 162, 163–165 Balkans war 143 Bank of Cyprus 86–87 Bank of England 47, 157 bank recapitalisation 58–59, 74–77, 84 Bankia 72 banking sector characteristics 35 banking supervision see financial supervision banking union 23, 74–75, 77, 83–85, 90–92, 106, 165, 195 see also deposit guarantees; financial supervision Barnier, Michel 41, 138 Barroso, José Manuel early days of crisis 41 European Commission 97, 98, 141, 172 Greece 3, 78 Italy 63 Batista, Paulo Nogueira 46 Belarus 149 Belgium 17, 100, 127 Berlusconi, Silvio euro currency view 151 Italy’s failure to reform 59, 60, 62–63 People of Freedom party (PdL) 107 resignation 64 Black Wednesday 16–17 Blair, Tony 28, 112 BNP Paribas 40 Bolkestein directive 137 bond yields 37, 38, 61, 70, 89 bond spreads 37, 42, 70, 80, 88 Bootle, Roger 1 Bowles, Sharon 98, 129 Brandt, Willy 10 Bretton Woods 9–10 Brown, Gordon 24, 41, 48, 102, 112, 144 Bruegel think-tank 35, 74, 163, 166 budget deficits Maastricht ceiling 15 timescales for meeting targets 88–89 see also stability and growth pact budgets annual, European 21, 27, 118 central 13, 168–170 federal 164, 168 fiscal capacity 84 Bulgaria 108, 113, 124, 126, 147 Bundesbank 16, 23, 157 C Cameron, David 14, 17, 64–65, 117–119, 132, 140 Cannes G20 summit (2011) 62–64 Capital Economics 1 Cassis de Dijon judgment 21 Catalonia 178 CEBS (Committee of European Banking Supervisors) 35 central banks, national 22–23 Centre for European Policy Studies 34 Centre for European Reform 34 CFSP (Common Foreign and Security Policy) 142, 144 China 33, 139, 167 Chirac, Jacques 18, 23, 100, 127 Christofias, Demetris 86 Churchill, Winston 7, 115, 161 Clark, Christopher 178 climate change 135–136 Clinton, Hillary 144 Cockfield, Arthur 13 Committee of European Banking Supervisors (CEBS) 35 Committee of Permanent Representatives (COREPER) 20 Committee of Regions 21 common fisheries policy 100, 138 Common Foreign and Security Policy (CFSP) 142, 144 community method 19, 21–22 Competitiveness Pact see Euro Plus Pact complacency pre-crisis 36–37 Constâncio, Vítor 34 constitution proposals 26–27 convergence criteria 14–16, 41, 112, 193 COREPER (Committee of Permanent Representatives) 20 COSAC (Conference of Community and European Affairs Committees of Parliaments of the European Union) 133 Council of Ministers 20, 121, 130 Council of the European Union see Council of Ministers Court of Auditors 21 Court of First Instance 21 Crafts, Nicholas 9 credit ratings (countries) 69, 77–78, 108 Crimea 150 Croatia 113, 143, 147 current-account (im)balances 25, 31, 88–89, 167–168 customs union, German 9 Cyprus accession 147 bail-out 2, 85–88 entry to euro 112 finances pre-crisis 30 Cyprus Popular Bank (Laiki) 86–88 Czech Republic 113, 118 D Dayton agreement 143 de Gaulle, Charles 9, 22, 96 de Larosière, Jacques 41, 74 Deauville meeting between Sarkozy and Merkel 51–52, 102 debt mutualisation 74, 103, 166–167 defence and security 8, 143, 145 deflation 92 Delors, Jacques 11, 37, 97 Delpla, Jacques 167 democratic accountability 125–129, 162 democratic deficit 121, 129–132, 162–163, 171–172 Denmark European participation 112 justice and home affairs (JHA) 111, 139 ministerial accountability 133 opt-outs 139 referendums 16, 27, 132 shadowing of euro 113 single currency opt-out 110, 115 UK sympathies 119 deposit guarantees 5, 40–41, 74, 77, 91 Deutschmark 10, 12, 16 devaluation, internal 31, 65–66 Dexia 72 Dijsselbloem, Jeroen 24, 87 double majority voting 20, 114 Draghi, Mario 156 appointment as ECB president 23, 68 crisis-management team 2 demand for fiscal compact 64 Long Term Refinancing Operations (LTRO) 68–70 outright monetary transactions (OMT) 78–81 pressure on Berlusconi 59 “whatever it takes” London speech 79 Duisenberg, Wim 23 E e-commerce 137 east–west divide 108 ECB (European Central Bank) bond-buying 47–49, 59–60 crisis-management planning 2, 4 delays 156 European System of Central Banks 22 liquidity provision 40–42, 68–70 outright monetary transactions (OMT) 79–81, 164, 175–176 role and function 22–24, 39–40, 170–171 supervision 6, 99, 175, 195 troika membership 160–161 EcoFin meetings 20, 114 Economic and Financial Committee 20 economic and monetary union (EMU) 11, 112 Economic and Social Committee 21 economic imbalances 30–34 The Economist on ECB responsibilities 15 fictitious memorandum to Angela Merkel 1 ECSC (European Coal and Steel Community) 7–8 EEAS (European External Action Service) 142, 144 EEC (European Economic Community) 8 EFSF (European Financial Stability Facility) 26, 48, 55, 60–61, 81, 194 see also ESM (European Stability Mechanism) EFSM (European Financial Stabilisation Mechanism) 48 Eiffel group 120, 129, 164 elections, European 121, 129–130 Elysée treaty 100 emissions-trading scheme (ETS) 135–136 EMS (European Monetary System) creation of 11 exchange-rate mechanism 16 membership 15 EMU (economic and monetary union) 11, 112 EMU@10 36 energy policies 136 enhanced co-operation 111 enlargement 33, 146–147 environment summits 135 Erdogan, Recep Tayyip 148 ESM (European Stability Mechanism) 194 establishment 26, 55, 80–81 operations 58, 75, 76, 91 Estonia 65, 108 ETS (emissions-trading scheme) 135–136 EU 2020 strategy 137 euro break-up contingency plans 2–3 convergence criteria 14–16, 41, 112, 193 crash danger 47–48 introduction of 4, 18 notes and coins 18 special circumstances 3–4 euro crisis effect on world influence 143–146 errors 155–161 focus of attention 135–141 Euro Plus Pact 55, 195 euro zone 4 economic dangers 175–178 increasing significance of institutions 113–114, 120 performance compared with US 154–155 political dangers 175–178 political integration 125 trust 173 Eurobonds 54, 59, 74, 166–167 Eurogroup of finance ministers 24, 114 European Banking Authority 114, 195 European Central Bank (ECB) bond-buying 47–49, 59–60 crisis-management planning 2, 4 delays 156 European System of Central Banks 22 liquidity provision 40–42, 68–70 outright monetary transactions (OMT) 79–81, 164, 175–176 role and function 22–24, 39–40, 170–171 supervision 6, 99, 175, 195 troika membership 160–161 European Coal and Steel Community (ECSC) 7–8 European Commission commissioners 19, 172 errors 160 future direction 171–172 influence and power 96–97, 99, 119, 125 intrusiveness 127, 140–141 organisation 19 presidency 131, 144 proposals for economic governance 50 European Community 12 European Council 20, 98–99 European Court of Human Rights 21 European Court of Justice 21 European Defence Community 8 European Economic Community (EEC) 8 European External Action Service (EEAS) 142, 144 European Financial Stabilisation Mechanism (EFSM) 48 European Financial Stability Facility (EFSF) 26, 48, 55, 60–61, 81, 194 see also European Stability Mechanism (ESM) European Financial Stability Mechanism 26 see also European Stability Mechanism (ESM) European Investment Bank 21 European Monetary Institute 22 European Monetary System (EMS) creation of 11 exchange-rate mechanism 16 membership 15 European Parliament 20–21, 97–98, 99, 100, 119, 121, 129–132, 171 European People’s Party 117, 127, 130–131 European Political Co-operation 142 European semester 25, 195 European Stability Mechanism (ESM) 194 establishment 26, 55, 80–81 operations 58, 75, 76, 91 European Systemic Risk Board 41 European Union driving forces for monetary union 12–13 expansion 26 historical background 7–12 treaty making 26–28 world influence 140, 142–150 European Union Act (2011) 117, 132 Eurosceptics 13, 123 Finns Party 124 Jobbik 125 League of Catholic Families 125 National Front 124 Party of Freedom (PdL) 124 UK Independence Party (UKIP) 118, 125, 140 excessive deficit procedure 24, 88–89, 194, 195 exchange-rate systems 3, 9–11 exchange rates 164 F Farage, Nigel 98, 118 Federal Deposit Insurance Corporation (FDIC) 77 Federal Reserve (US) 23, 47, 48, 157 federalism 19, 110, 116, 161–165, 168–170, 177–178 financial integration 35–36 financial supervision 195 ECB 6, 99, 175, 195 Jacques de Larosière proposals 41 national 23, 35 single supervisor 76–77, 83–84, 90 Finland accession 26, 111 Finns Party 124 influence 108 ministerial accountability 133 fiscal capacity 84 fiscal compact treaty 25–26, 64–65, 118, 194–195 fiscal policy, focus on 30–31 Five Star Movement 124, 126 fixed exchange-rate systems 3, 9–10 Foot, Michael 116 forecasts, growth 92 foreign policy 142–143 Fouchet plan 22 France credit rating 69, 103 current-account balance 168 EMS exchange-rate mechanism 16 excessive deficit procedure 89 GDP growth 32 and Greece 44 influence 100–104, 142–143 Maastricht deal 12, 16 public debt 159 public opinion of EU 123, 124 single currency views 16–17 unemployment 159 veto of UK entry 115 vote to block European Defence Community 8 freedoms of movement 8, 13 G Gaulle, Charles de 9, 22, 96 Gazprom 136 GDP growth 32 Georgia 149 Germany 2013 elections 90, 106, 125 bond yields 37, 89 Bundesbank 16, 23, 157 constitutional (Karlsruhe) court 45, 95, 128, 158 credit rating 69, 77–78 crisis management errors 155–156 current-account surplus 89, 105, 167–168 demands post Greek bail-out 50–51 economic strengths and weaknesses 14 GDP growth 32 and Greece 44 influence 100–106 Maastricht deal 12, 15–16 national control and accountability 128, 133 parliamentary seats 100 political parties 93, 125 public debt 159 public opinion of EU 123 unemployment 159 unification 16 Zollverein 9 Giscard d’Estaing, Valéry 11, 18, 26, 100 Glienicker group 163, 170 gold standard 9–10 Golden Dawn 124 government spending (worldwide) 4 governments, insolvency of 50 great moderation 31 Greece 2012 election 73, 126 bail-out deal 45–47, 56–58, 65–67, 70, 158 bond yields 37, 61–62 current-account balance 168 debt crisis 42–45 euro membership 18, 112, 115 finances post bail-out 93–94 finances pre-crisis 30, 71 GDP growth 32 potential euro exit 1–5, 81–83 public debt 159, 166 public opinion of EU and euro 113, 123, 124 referendum on bail-out 2, 61–62 unemployment 159 Gros, Daniel 34 H Hague, William 151 Haider, Jörg 127 Hamilton, Alexander 162, 167 Heath, Edward 10, 116 Heisbourg, François 104 Hollande, François 73–74, 89, 103–104, 127 proposed reforms 177 Hungary 41, 113, 126, 147 Hypo Real Estate 41 I Iceland 53, 147 ideological differences 114–115 IKB Deutsche Industriebank 40 immigration 139–140, 146, 147 impossible trinity 13 inter-governmentalism 96, 128, 174 interest rates 93, 164 internal devaluation 31, 65–66 International Monetary Fund (IMF) banking union 74 crisis-management planning 2, 4–5 Cyprus 86–87 errors 160–161 euro zone support 48 Greece 44–46, 56–57, 66, 83, 93–95, 160 Latvia 65 rainy-day funds 169–170 special drawing rights (SDR) 63 Iraq 143 Ireland 89, 110 bail-out 53–54, 56, 57, 89 bank crises 40, 71 bond yields 37, 47, 53, 61, 89 current-account balance 168 finances pre-crisis 30 GDP growth 32 influence 107 opt-outs 111, 139 public debt 159, 166 public opinion of EU 123 referendums 27, 28, 132 unemployment 159 Italy 2013 elections 107, 124, 126 bond yields 37, 61, 89 convergence criteria 17 current-account balance 168 danger of collapse 59 EMS exchange-rate mechanism 16 excessive deficit procedure 89 GDP growth 32 influence 100, 104, 107 interest rates 93 public debt 159, 166 public opinion of EU 123 single currency views 17 unemployment 159 J Jenkins, Roy 11 Jobbik 125 Juncker, Jean-Claude 98, 104, 177 candidate for Commission Presidency 131 EU 2005 budget crisis 28 Eurobonds 54 Eurogroup president 24 justice and home affairs (JHA) 139 K Karamanlis, Kostas 42 Karlsruhe constitutional court 45, 95, 128, 158 Kauder, Volker 105 Kerry, John 144 Kohl, Helmut 12, 18, 100 L labour markets 14, 33–34 Lagarde, Christine 51, 58, 62, 92 Laiki 86–88 Lamers, Karl 111 Lamont, Norman 17 Larosière, Jacques de 41, 74 Latin Monetary Union 9 Latvia 41, 65, 67, 88, 108 Lawson, Nigel 16 League of Catholic Families 125 legislative path 21–22 Lehman Brothers, ECB reaction to collapse 4 Letta, Enrico 107–108 Libya 143, 145 Lipsky, John 57 Lisbon treaty 28, 45, 194 foreign policy 142 institutions 20, 131 justice and home affairs (JHA) 139 subsidiarity 133 voting 20, 114 Lithuania 88, 113, 153 Long Term Refinancing Operations (LTRO) 68–70, 72 Luxembourg 77–78, 100, 108, 169 Luxembourg compromise 97 M Maastricht treaty 11–12, 15, 22, 142, 193 opt-outs and referendums 16, 110–111 MacDougall report (1977) 13, 169 Major, John 12, 111, 116 Malta 100, 112 Maroni, Roberto 34 Mayer, Thomas 1 McCreevy, Charlie 41 MEPs 20–21, 130 Merkel, Angela 2013 re-election 90 banking union 74–77 Cannes G20 summit (2011) 63–64 crisis response 40–41, 44 European constitution 28 fictitious memorandum to 1 future direction 178 power and influence 89, 102–106, 153 Sarkozy collaboration 60, 61–62, 102–103 support for Cyprus 86 support for Greece 5, 45, 49–52, 81–82 support for UK 118–119 union method 22, 128 voter support 125 Messina conference 8, 115 migration 139–140, 146, 147 Miliband, David 144 Mitterrand, François 11, 12, 18, 100 Mody, Ashoka 163 Moldova 149 Monnet, Jean 8, 152 Montebourg, Arnaud 104 Montenegro 147 Monti, Mario 64 influence 70, 75–76, 107 A New Strategy for the Single Market (2010) 137–138 Morocco 146 Morrison, Herbert 8 Morsi, Muhammad 145 Moscovici, Pierre 75 multi-annual financial framework 21, 27, 118 Mundell, Robert 12–13 mutualisation of debt 74, 103, 166–167 N national budgets 89, 125 National Front 124 NATO defence spending targets 145 European security 8 membership 110 Netherlands credit rating 77–78 excessive deficit procedure 89 influence 100, 108 ministerial accountability 133 UK sympathies 119 Nice treaty 194 no-bail-out rule 45, 162, 163–165 north–south divide 33–34, 108 Northern Rock 40 notes and coins 18 Nouy, Danièle 90 Nuland, Victoria 149 O Obama, Barack 63 official sector involvement (OSI) 83 OMT (outright monetary transactions) 79–81, 164, 175–176 Germany’s constitutional court judgment 95, 128 optimal currency-area theory 12–13, 14–15 Orban, Viktor 126 Osborne, George 117, 119 OSI (official sector involvement) 83 outright monetary transactions (OMT) 79–81, 164, 175–176 Germany’s constitutional court judgment 95, 128 P Pact for the Euro see Euro Plus Pact Papaconstantinou, George 43 Papademos, Lucas 64 Papandreou, George 56, 60 election 43 Greek referendum 61–62 resignation 2, 64 Party of Freedom 124 Poland 109, 113 Policy Exchange 1 political parties 124–125, 139–140 political union 10, 12, 133–134 Pompidou, Georges 10 Poos, Jacques 143 Portugal 110 bail-out 54, 57, 89–90 bond yields 37, 47, 53, 61, 89 public opinion of EU and euro 113 power, balance of 99–101 price stability goal of ECB 23 private-sector involvement (PSI) in debt restructuring 51–52 Prodi, Romano 17, 25, 97 Progressive Alliance of Socialists and Democrats (S&D) 130–131 public debt 15, 158–159 see also sovereign debt public opinion of EU and euro 121–124 Putin, Vladimir 149–150 Q qualified-majority voting 13, 20, 99, 121 negative qualified-majority voting 25, 195 quantitative easing (QE) 47, 15 R Rajoy, Mariano 70, 75–76, 127 recapitalisation, bank 58–59, 74–77, 84 redenomination 3–4, 153–154, 175 Reding, Viviane 139 referendums 27, 28, 121–122, 132 REFIT initiative 172 Regling, Klaus 26 Renzi, Matteo 107–108 rescue fund see European Stability Mechanism (ESM) resolution mechanism 90–91, 165, 195 single resolution mechanism (SRM) 195 single supervisory mechanism (SSM) 195 Romania 41, 108, 113, 124, 126, 147 Rome treaty 8, 97, 110, 193 Rösler, Philipp 78 Rueff, Jacques 9 Rumsfeld, Donald 143 Russia, influence on Ukraine 149–150 Rutte, Mark 77 S Samaras, Antonis 2, 78, 82, 93–94 Santer, Jacques 97 Sarkozy, Nicolas crisis response 40–41, 44 economic governance 49–50 European constitution 28 LTROs and the Sarkozy trade 69 Merkel collaboration 51–52, 60, 61–62, 102–103 Schäuble, Wolfgang 62, 75, 84, 90–91, 106, 111, 154 Schengen Agreement 110, 111–112 Schmidt, Helmut 11, 100 Schröder, Gerhard 18, 101, 127 Schulz, Martin 131 Schuman Day 8 Schuman, Robert 7–8 Scotland 112, 178 SDR (special drawing rights) 63 Securities Market Programme (SMP) 48, 79 services directive 34 Shafik, Nemat 65 Sikorski, Radek 109 Simitis, Costas 18 Simms, Brendan 179 single currency benefits 152 club within a club 112 driving forces 12–14 importance of 113 vision for 9 see also euro Single European Act 13, 193 single market 4, 137–138, 174–175 Sinn, Hans-Werner 101 six-pack 25, 50, 195 Slovakia 112 adoption of euro 41 influence 108 Slovenia 88–89, 112 influence 108 SMP (Securities Market Programme) 48, 79 snake in the tunnel 10 Solana, Javier 142 sovereign debt 165–166 see also public debt Spain 110 bail-out 70–73, 89 bank recapitalisation 84 bond yields 37, 89 CDS premiums 72 current-account balance 168 danger of collapse 59 excessive deficit procedure 89 finances pre-crisis 30 GDP growth 32 influence 107 public debt 159 public opinion of EU 123, 124 single currency views 17 unemployment 159 special drawing rights (SDR) 63 stability and growth pact 18, 24, 29, 50–51, 127, 194 Stark, Jürgen 59, 106 Steinbrück, Peer 43 Strauss-Kahn, Dominique 24, 44, 57 stress tests, bank 72, 175 subsidiarity 133, 141 Sweden 109, 111, 112 euro opt-out 18, 115 UK sympathies 119 Syria 145 Syriza 124 T Target II 157 Thatcher, Margaret 27, 110, 116 third energy package 136 Tilford, Simon 34 Tindemans, Leo 111 trade policy 138 Transatlantic Trade and Investment Partnership (TTIP) 138–139 treaty making and change 26–27, 173–174 Treaty of Amsterdam 111–112, 193 Treaty of Lisbon 28, 45, 194 foreign policy 142 institutions 20, 131 justice and home affairs (JHA) 139 subsidiarity 133 voting 20, 114 Treaty of Nice 194 Treaty of Rome 8, 97, 110, 193 Treaty on European Union (Maastricht treaty) 11–12, 15, 22, 142, 193 opt-outs and referendums 16, 110–111 Treaty on Stability, Co-ordination and Governance (TSCG) see fiscal compact treaty Tremonti, Giulio 54, 60 Trichet, Jean-Claude 151, 156 bond-buying 47–48, 52–53 crisis-management planning 2 early warnings 39–40 ECB president 23 IMF 44 Italy 59 True Finns 124 Turkey 132, 147, 148 Tusk, Donald 109, 114 two-pack 25, 89, 195 U UK Independence Party (UKIP) 118, 125, 140 Ukraine 149–150, 179–180 unemployment 158–159, 170 union method 19, 22 United Kingdom current-account balance 168 economic strengths and weaknesses 14 EMS exchange-rate mechanism 16 euro crisis reaction 117–118 euro membership 112 European budget contribution 27–28 European involvement 8, 10, 12, 115–119 future status 174–175 influence 100–101, 106, 109, 142–143 initial application to join EEC 9 opt-outs 110–111, 139 public opinion of EU 123 single currency views 17 United Left party 124 United States abandonment of gold standard 10 federalism model 177 foreign policy 143 performance compared with euro zone 154–155 Urpilainen, Jutta 77 V Van Gend en Loos v Nederlandse Administratie der Belastingen (1963) 21 Van Rompuy, Herman 98 crisis-management planning 3 Cyprus 87 European Council presidency 20, 28 Italy 63 roadmap for integration 74–75, 84, 173 support for Greece 43–45 Venizelos, Evangelos 57, 62 Verhofstadt, Guy 131 Véron, Nicolas 35 Vilnius summit 149 von Weizsäcker, Jakob 166 W Waigel, Theo 17–18 Wall Street flash crash 47 Weber, Axel 49, 56, 106 Weidmann, Jens 40, 80, 82 Weizsäcker, Jakob von 166 Werner report (1971) 10 Wilson, Harold 116 Wolfson Prize 1 World Bank 33 World Trade Organisation 138–139 Y Yanukovych, Viktor 149 Z Zapatero, José Luis Rodríguez 59, 62 Zollverein 9 PublicAffairs is a publishing house founded in 1997.
Vanished Kingdoms: The Rise and Fall of States and Nations by Norman Davies
anti-communist, Berlin Wall, British Empire, Celtic Tiger, Corn Laws, en.wikipedia.org, energy security, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, labour mobility, land tenure, mass immigration, Mikhail Gorbachev, oil rush, oil shale / tar sands, Red Clydeside, Ronald Reagan, Skype, special economic zone, trade route, urban renewal
The behaviour seemed all the more reprehensible since it coincided with the inquiries and reports that comprehensively exposed the shortcomings of the Catholic Church. Eventually a leading Irish commentator, foreseeing disaster, described his country as ‘A Ship of Fools’.96 Damien Dempsey was the songster who set the national mood to music: Greedy, greedy, greedy, greedy, greedy So greedy, greedy, greedy, greedy, greedy Now they say the Celtic Tiger in my home town Brings jewels and crowns, picks you up off the ground But the Celtic Tiger does two things It brings you good luck or it eats you for its supper. It’s the tale of the two cities on the shamrock shore. Please Sir can I have some more, Cos if you are poor you’ll be eaten for sure. And that’s how I know the poor have more taste than the rich And that’s how I know the poor have more taste than the rich. Hear the Tiger roar – I want more Hear the Tiger roar, I want more, more, more.97 The Republic’s distress coincided with the North’s convalescence.
‘A Day of Justice Dawning’ or ‘The Winds are Singing Freedom’, by Terry Makem, http://merryploughboys.com/cd-lyrics/3_01twasf.html (2009). 95. ‘A Nation Once Again’, composed by Thomas Osborne Davis (1814–45), http://en.wikipedia.org/wiki/a_nation_once_again (2009); see also http://www.bbc.co.uk/worldservice/us/features/topten (2009), with audio recording by the Wolfe Tones. 96. Fintan O’Toole, Ship of Fools: How Stupidity and Corruption Killed the Celtic Tiger (London, 2009). 97. Damien Dempsey, ‘Celtic Tiger’, http://www.justsomelyrics.com/1511874 (2011). 98. Michael Cox et al., A Farewell to Arms: Beyond the Good Friday Agreement, 2nd edn. (Manchester, 2006). 99. Mary MacAleese, ‘Changing History’, Longford Lecture, 23 November 2007, quoted Margaret Macmillan, The Uses and Abuses of History (London, 2009), p. 72. 100. Ian Paisley, 8 May 2007, www.allgreatquotes.com. 101.
Thanks to investment in education and modern technology, and to membership of the European Union, remarkable advances took place from the 1960s onwards; Ireland’s GDP per capita rose decade by decade until at the beginning of the twenty-first century it overtook that of the United Kingdom. For a time, Irish citizens enjoyed the top ranking in the Worldwide Quality of Life Index.7 Not until the global recession of 2008–9 did the ‘Celtic Tiger’ (so named in 1994) stumble, and with it the political elite’s reputation. Out of Prince Albert’s hearing, the talk in Dublin was of ineffectual leadership, and of ‘a culture of clientilism, cronyism and corruption’. The official Irish version of Irish history is built round a three-part scheme of periodization. Two or three millennia of the ‘Era of Ancient Celtic Freedom’, stretching from prehistory to the twelfth century AD, are followed by the ‘Era of Foreign Domination’ (1171–1916) and then by the ‘Era of National Liberation’, which is still in progress.
Paper Promises by Philip Coggan
accounting loophole / creative accounting, activist fund / activist shareholder / activist investor, balance sheet recession, bank run, banking crisis, barriers to entry, Berlin Wall, Bernie Madoff, Black Swan, Bretton Woods, British Empire, call centre, capital controls, Carmen Reinhart, carried interest, Celtic Tiger, central bank independence, collapse of Lehman Brothers, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, debt deflation, delayed gratification, diversified portfolio, eurozone crisis, Fall of the Berlin Wall, falling living standards, fear of failure, financial innovation, financial repression, fixed income, floating exchange rates, full employment, German hyperinflation, global reserve currency, hiring and firing, Hyman Minsky, income inequality, inflation targeting, Isaac Newton, John Meriwether, joint-stock company, Kenneth Rogoff, labour market flexibility, light touch regulation, Long Term Capital Management, manufacturing employment, market bubble, market clearing, Martin Wolf, money market fund, money: store of value / unit of account / medium of exchange, moral hazard, mortgage debt, Myron Scholes, negative equity, Nick Leeson, Northern Rock, oil shale / tar sands, paradox of thrift, peak oil, pension reform, Plutocrats, plutocrats, Ponzi scheme, price stability, principal–agent problem, purchasing power parity, quantitative easing, QWERTY keyboard, railway mania, regulatory arbitrage, reserve currency, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, short selling, South Sea Bubble, sovereign wealth fund, special drawing rights, The Chicago School, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Wealth of Nations by Adam Smith, time value of money, too big to fail, trade route, tulip mania, value at risk, Washington Consensus, women in the workforce, zero-sum game
The Greek economy was revealed to be dysfunctional. Ireland entered the crisis in a good degree of fiscal health; its debt-to-GDP ratio in 2007 was just 25 per cent. Three years later, it was 98 per cent, thanks to the government’s commitment to guarantee the deposits (and senior bonds) of the banking sector. The bank sector was recovering from a lending spree, fuelled by the success of what was known in the 1990s as the ‘Celtic tiger’ economy. Ireland’s credit boom was in part caused by euro-zone membership. The European Central Bank sets interest rates for the region on the basis of average conditions. Inevitably, rates will be too low for some countries and too high for others. Irish GDP grew, in real terms, by 6.2% in 2005, 5.4% in 2006 and 6% in 2007; over the same three years, German GDP grew by 0.8%, 3.2% and 2.5% respectively.
Index AAA Status of US Adams, Douglas Adams, John Addison, Lord Adenauer, Konrad adjustable rate mortgages adulterating coins affluent society Afghanistan ageing populations agrarian revolution Ahamed, Liaquat AIG air miles Alaska Amazon.com Angell, Norman Anglo Irish Bank annuities Argentina Aristophanes Arkansas Asian crisis of 1997 – 8 asset prices assignats Athens Austen, Jane austerity Austria Austrian school Austro-Hungarian empire Aztecs B&Q baby boomers Babylon Bagehot, Walter bailouts balanced budget Baldwin II, King of Jerusalem Balfour, Arthur Bancor Bank for International Settlements bank notes Bank of England bank reserves bank runs bankruptcy codes Banque Generale Barclays Capital Baring, Peter Baring Brothers Barnes & Noble barter Basle Accords Bastiat, Frederic BCA Research BCCI bear markets Bear Stearns Beaverbrook, Lord Belgium Belloc, Hillaire Benn, Tony Benn, William Wedgwood Bernanke, Ben Bernholz, Peter bezant Big Bang Big Mac index bills of exchange bimetallism biofuels Bismarck, Otto von Black Death Black Monday black swan Blackstone Blair, Tony Blum, Léon BMW Bodencreditanstalt Bohemia Bolsheviks Bonnet, Georges Bootle, Roger Brady, Nicholas Brady bonds Brazil Bretton Woods system Brodsky, Paul Brooke, Rupert Brown, Gordon Bruning, Heinrich Brutus Bryan, William Jennings bubbles budget deficits budget surplus building societies Buiter, Willem Bundesbank Burns, Arthur Bush, George W. Business Week Butler, Eamonn Calder, Lendol California Callaghan, Jim Calvin, John Canada Canadian Tar Sands capital controls capital economics capital flows capital ratios carried interest carry trade Carville, James Cassano, Joseph Cato Institute Cayne, Jimmy CDU Party ‘Celtic tiger’ central bank reserves Cesarino, Filippo ‘Chapter’ Charlemagne Charles I, King of England cheques/checks chief executive pay Chile China Churchill, Winston civil war (English) civil war (US) Citigroup clearing union Clientilism Clinton, Bill CNBC collateralized debt obligations commerical banks commercial property commodity prices Compagnie D’Occident comparative advantage conduits confederacy Congdon, Tim Congress, US Connally, John Conservative Party Consols Constantine, Emperor of Rome consumer price inflation continental bonds convergence trade convertibility of gold suspended Coolidge, Calvin copper Cottarelli, Carlo Council of Nicea Cowen, Brian cowrie shells Credit Anstalt credit cards credit crisis of 2007 – 8 credit crunch credit default swaps ‘cross of gold’ speech Cunliffe committee Currency Board currency wars Dante Alighieri David Copperfield Davies, Glyn debasing the currency debit cards debt ceiling debt clock debt deflation spiral debt trap debtors vs creditors, battle defaults defined contribution pension deflation Defoe, Daniel Delors, Jacques Democratic convention of 1896 Democratic Party Democratic Republic of Congo demographics denarii Denmark deposit insurance depreciation of currencies derivatives Deutsche Bank Deutschmark devaluation Dickens, Charles Dionysius of Syracuse Dodd – Frank bill dollar, US Dow Jones Industrial Average drachma Duke, Elizabeth Dumas, Charles Duncan, Richard Durst, Seymour Dutch Republic East Germany East Indies companies Economist Edward III, King of England Edwards, Albert efficient-market theory Egypt Eichengreen, Barry electronic money embedded energy energy efficiency estate agents Estates General Ethelred the Unready euro eurobonds eurodollar market European Central Bank European Commission European Financial Stability Facility European Monetary System European Union eurozone Exchange Rate Mechanism, European exorbitant privilege farmers Federal Reserve Federal Reserve Bank of Philadelphia Federalist party fertility rate ‘fiat money’ Fiji final salary pension Financial Services Authority Financial Times Finland First Bank of the United States First World War fiscal policy fiscal union Fisher, Irving fixed exchange rates floating currencies florin Florio, Jim Ford, Gerald Ford, Henry Ford Motor Company Foreign & Colonial Trust foreign direct investment foreign exchange reserves Forni, Lorenzo Forsyte Saga France Francis I, King of France Franco-Prussian War Franklin, Benjamin French Revolution Friedman, Milton Fuld, Dick futures markets Galbraith, John Kenneth Galsworthy, John GATT Gaulle, Charles de Geithner, Tim General Electric General Motors general strike of 1926 Genghis Khan Genoa conference George V, King of England Germany gilts Gladstone, William Glass – Steagall Act Gleneagles summit Glorious Revolution GMO Gokhale, Jagadeesh gold gold exchange standard gold pool gold standard Goldman Sachs goldsmiths Goodhart, Charles Goodhart’s Law Goschen, George Gottschalk, Jan government bonds government debt Graham, Frank Granada Grantham, Jeremy Great Compression Great Depression Great Moderation Great Society Greece Greenspan, Alan Gresham, Sir Thomas Gresham’s Law Gross, Bill G7 nations G20 meeting Guinea Habsburgs Haiti Haldane, Andrew Hamilton, Alexander Hammurabi of Babylon Havenstein, Rudolf von Hayek, Friedrich Heavily Indebted Poor Countries initiative hedge funds Henderson, Arthur Henry VIII, King of England Hien Tsung, Chinese emperor Hitler, Adolf Hoar, George Frisbie Hohenzollern monarchy Holy Roman Empire Homer, Sydney Hoover, Herbert House of Representatives houses Hume, David Hussein, Saddam Hutchinson, Thomas Hyde, H.
Extreme Money: Masters of the Universe and the Cult of Risk by Satyajit Das
affirmative action, Albert Einstein, algorithmic trading, Andy Kessler, Asian financial crisis, asset allocation, asset-backed security, bank run, banking crisis, banks create money, Basel III, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Black Swan, Bonfire of the Vanities, bonus culture, Bretton Woods, BRICs, British Empire, capital asset pricing model, Carmen Reinhart, carried interest, Celtic Tiger, clean water, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, corporate raider, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, Daniel Kahneman / Amos Tversky, debt deflation, Deng Xiaoping, deskilling, discrete time, diversification, diversified portfolio, Doomsday Clock, Edward Thorp, Emanuel Derman, en.wikipedia.org, Eugene Fama: efficient market hypothesis, eurozone crisis, Fall of the Berlin Wall, financial independence, financial innovation, financial thriller, fixed income, full employment, global reserve currency, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, happiness index / gross national happiness, haute cuisine, high net worth, Hyman Minsky, index fund, information asymmetry, interest rate swap, invention of the wheel, invisible hand, Isaac Newton, job automation, Johann Wolfgang von Goethe, John Meriwether, joint-stock company, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, Kevin Kelly, labour market flexibility, laissez-faire capitalism, load shedding, locking in a profit, Long Term Capital Management, Louis Bachelier, margin call, market bubble, market fundamentalism, Marshall McLuhan, Martin Wolf, mega-rich, merger arbitrage, Mikhail Gorbachev, Milgram experiment, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, mortgage tax deduction, mutually assured destruction, Myron Scholes, Naomi Klein, negative equity, Network effects, new economy, Nick Leeson, Nixon shock, Northern Rock, nuclear winter, oil shock, Own Your Own Home, Paul Samuelson, pets.com, Philip Mirowski, Plutocrats, plutocrats, Ponzi scheme, price anchoring, price stability, profit maximization, quantitative easing, quantitative trading / quantitative ﬁnance, Ralph Nader, RAND corporation, random walk, Ray Kurzweil, regulatory arbitrage, rent control, rent-seeking, reserve currency, Richard Feynman, Richard Feynman, Richard Thaler, Right to Buy, risk-adjusted returns, risk/return, road to serfdom, Robert Shiller, Robert Shiller, Rod Stewart played at Stephen Schwarzman birthday party, rolodex, Ronald Reagan, Ronald Reagan: Tear down this wall, Satyajit Das, savings glut, shareholder value, Sharpe ratio, short selling, Silicon Valley, six sigma, Slavoj Žižek, South Sea Bubble, special economic zone, statistical model, Stephen Hawking, Steve Jobs, survivorship bias, The Chicago School, The Great Moderation, the market place, the medium is the message, The Myth of the Rational Market, The Nature of the Firm, the new new thing, The Predators' Ball, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, trickle-down economics, Turing test, Upton Sinclair, value at risk, Yogi Berra, zero-coupon bond, zero-sum game
9 In 2010, as Dubai experienced its own financial crisis, the DIFC’s rents, once the second-most expensive after London, fell by two-thirds in a desperate effort to make the district more attractive. Unlikely Centers Ireland, historically a poor, agrarian economy, reinvented itself. In the 1970s, Ireland entered the European Union (EU) (then known as the European Economic Community). Influx of EU money, a well-educated population, low taxes, limited regulations, and business-friendly governments transformed Ireland into the Celtic tiger. In the late 1980s, Ireland established a financial center in Dublin—creatively named the International Financial Centre. Continental banks, especially from Germany, set up units in Dublin, raising money that was then channeled into various investments. Money flowed in and out, and profits were transferred back to the parent. The proximity to London helped. Indigenous Irish banks grew rapidly, and a seemingly endless supply of easy money drove the Irish economy.
Irish banks lent aggressively to property developers in an unprecedented real estate boom. Having doubled in price in a few years, a modest family home in Dublin cost the same as one in Beverly Hills. A three-bedroom penthouse in the Elysian, the tallest building in Ireland, complete with Porsche SE taps and views over Cork, cost €1.8 million ($2.6 million). Intoxicated at the success of the “Celtic tiger” and the country’s double-digit growth, the Irish splashed out, behaving like “a poor person who had won the lottery.” As novelist Anne Enright expressed it: “We’re very narcisstic...[believing] our boom was better than anyone else’s.”20 Now, house prices fell by 50 percent and the cranes that dotted Dublin’s skyline stood idle. The Irish banking system collapsed under the weight of bad loans, unable to raise money.
., 44, 341, 346 2001 tax cuts, 298 business schools, 308-313 bonuses, 317-318 compensation, 313-320 BusinessWeek, 170 buy and flick, 139 Byrd, Richard Evelyn, 256 Byrne, David, 46 Byrne, Rhonda, 45 C Caesar, 295 calculators, 122 call options, 209 Volkswagen (VW), 257 Callan, Erin, 288, 329 Calomiris, Charles, 273 Canadian dollars, 21 Canary Wharf, 79 Cantor, Eddie, 338 capital definition of, 280 flows, 205 gains, 160 injections into banks, 348-350 introductions, 247 leveraged, 244 Modigliani-Miller propositions, 119 structure arbitrage, 242 velocity of, 69 capital asset pricing model (CAPM), 117 capitalism, 102 Capitalism: A Love Story, 165 Capitalism: The Unknown Ideal, 297 CAPM (capital asset pricing model), 173 Capra, Frank, 65 carceral continuum, 312 careers certifications, 309-310 finance, 308-313 bonuses, 317-318 compensation, 313-320 Carlyle Group, The, 154, 163, 318 Carlyle, Thomas, 102 Carnegie Mellon University, 119 Carr, Fred, 145 Carroll, Lewis, 31 CARS (certificate for automobile receivables), 173 Carter, Jimmy, 74, 364 Caruso-Cabrera, Michelle, 95 Casablanca, 77, 311 Case, Steve, 58 cash flow, 138 forecasting, 160 General Electric (GE), 61 cash for clunkers, 348 Cassano, Joseph, 232 Cat’s Cradle, 339 catastrophe risk, 232 Catillo, Bernal Díaz del, 131 Cavendish Laboratory (Cambridge, England), 101 Cayman Islands, 220 Cayne, James, 318 CBOs (collateralized bond obligations), 173 CDOs (collateralized debt obligations), 173, 176 defaults of, 284 celebrity central bankers, age of, 297-300 celebrity financiers, 324-326 Celtic tiger, 83. See also Ireland Centaurus Energy, 319 Center for Research in Security Prices (CRSP), 131 Centlivre, Susannah, 75 central banks, 309 age of celebrity central bankers, 297-300 dissenters, 300-302 regulations, 279-281 risk transfers, 281-282 Central Intelligence Agency (CIA), 310 CEOs (chief executive officers) earnings, 323-324 knowledge of business operations, 292-293 Cerberus, 162 certifications, finance, 309-310 CFA (certified financial analyst), 309 Chains or Chain Link, 269 chains, mortgage, 183 Chancellor, Edward, 161 Chanos, Jim, 161 chaos theory, 274 Chase Manhattan Bank, 79 Chassagne-Montrachet, 304 Cheney, Dick, 265 Chesterton, G.K., 226 Chettle, Geoff, 228 Chicago, 104-105 Chicago Board of Option Exchange (CBOE), 122 Chicago Interpretation, the, 104, 130 Chicxulub crater, 339 Chiemgauer, 35 China, 82 Chinese Communist Party, 350 Chinese paper, 144 Chinese renminbi, 21 Chinese walls, 66 debt, purchase of American dollars, 87 as a financial center, 84-85 global credit process, 88 growth of, 86 relationship with America, 87 slowdown in economic activity, 350-351 China Aviation Oil (Singapore) Corporation, 56 Chinalco, 59 chits, 22 A Chorus Line, 164 Christianity, 65 Christie’s, 323 Chrysler, 162 Building, 79 purchase by Fiat, 344 Cioffi, Ralph, 191, 365 circulation of money, 32 Citadel Funds, 196, 241, 256 Citibank, 71 Citicorp Venture Capital, 154 Citicorp, merger of with Travelers, 75 Cities Services, 137 CitiGroup, 41, 75-77, 165, 290, 315 Center, 79 Todd Thompson, 93 City, the (London), 79 CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa), 91 civilization, 38 Clarke, David, 159 Clarkson, Brian, 284 clickety-clicks, 39.
Boomerang: Travels in the New Third World by Michael Lewis
Berlin Wall, Bernie Madoff, Carmen Reinhart, Celtic Tiger, collapse of Lehman Brothers, collateralized debt obligation, Credit Default Swap, credit default swaps / collateralized debt obligations, fiat currency, financial thriller, full employment, German hyperinflation, Irish property bubble, Kenneth Rogoff, offshore financial centre, pension reform, Ponzi scheme, Ronald Reagan, Ronald Reagan: Tear down this wall, South Sea Bubble, the new new thing, tulip mania, women in the workforce
HOW DID ANY of this happen? There are many theories: the elimination of trade barriers, the decision to grant free public higher education, a low corporate tax rate introduced in the 1980s, which turned Ireland into a tax haven for foreign corporations. Maybe the most intriguing was offered by a pair of demographers at Harvard, David E. Bloom and David Canning, in a 2003 paper called “Contraception and the Celtic Tiger.” Bloom and Canning argued that a major cause of the Irish boom was a dramatic increase in the ratio of working-age to non–working-age Irishmen, brought about by a crash in the Irish birthrate. This in turn had been mainly driven by Ireland’s decision, in 1979, to legalize birth control. That is, there was an inverse correlation between a nation’s fidelity to the Vatican’s edicts and its ability to climb out of poverty: out of the slow death of the Irish Catholic Church arose an economic miracle.
I.O.U.: Why Everyone Owes Everyone and No One Can Pay by John Lanchester
asset-backed security, bank run, banking crisis, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Black-Scholes formula, Celtic Tiger, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, Daniel Kahneman / Amos Tversky, diversified portfolio, double entry bookkeeping, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, financial innovation, fixed income, George Akerlof, greed is good, hindsight bias, housing crisis, Hyman Minsky, intangible asset, interest rate swap, invisible hand, Jane Jacobs, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Meriwether, laissez-faire capitalism, light touch regulation, liquidity trap, Long Term Capital Management, loss aversion, Martin Wolf, money market fund, mortgage debt, mortgage tax deduction, mutually assured destruction, Myron Scholes, negative equity, new economy, Nick Leeson, Norman Mailer, Northern Rock, Own Your Own Home, Ponzi scheme, quantitative easing, reserve currency, Right to Buy, risk-adjusted returns, Robert Shiller, Robert Shiller, Ronald Reagan, shareholder value, South Sea Bubble, statistical model, The Great Moderation, the payments system, too big to fail, tulip mania, value at risk
It’s grotesque that a place with a hinterland as rural as Galway and as copious a supply of fresh rainfall should have no drinkable water. The reason it didn’t was that the whole area had grown so fast, and with so little planning and attention to sustainability, that the infrastructure had broken down—in this case, the water-treatment infrastructure. That should have been a glaring indicator of the crisis which was about to engulf the “Celtic Tiger,” thanks to the carelessness with which its politicians had mismanaged the good years. To some of us who know and love Ireland, it was always a bad sign that the Irish economic miracle was named after an animal which doesn’t exist. Only a few months on from that, and Ireland was in the worst economic contraction of any developed country since the Great Depression. Ireland, joked the Economist in February 2008 (or maybe that should be semijoked) is at risk of being “Rekjavik on Liffey,” and it quoted a local witticism: “What’s the difference between Ireland and Iceland?
Social Democratic America by Lane Kenworthy
affirmative action, Affordable Care Act / Obamacare, barriers to entry, basic income, Celtic Tiger, centre right, clean water, collective bargaining, corporate governance, David Brooks, desegregation, Edward Glaeser, endogenous growth, full employment, Gini coefficient, hiring and firing, Home mortgage interest deduction, illegal immigration, income inequality, invisible hand, Kenneth Arrow, labor-force participation, manufacturing employment, market bubble, minimum wage unemployment, new economy, postindustrial economy, purchasing power parity, race to the bottom, rent-seeking, rising living standards, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, school choice, shareholder value, sharing economy, Skype, Steve Jobs, too big to fail, Tyler Cowen: Great Stagnation, union organizing, universal basic income, War on Poverty, working poor, zero day
In the past half century, a number of national models have gone in and out of fashion, first surging to the front and then falling back: Sweden (“middle way”) in the 1960s, Germany (“modell Deutschland”) and Japan (“Japan Inc.”) in the 1970s and 1980s, the United States (“great American jobs machine”) in the 1980s and 1990s, the Netherlands (“Dutch miracle”) in the 1990s, Denmark (“flexicurity”) and Ireland (“Celtic tiger”) in the 1990s and 2000s. Some later rebounded, such as Sweden in the 2000s and Germany in the 2010s. Economic growth is valuable. Yet for affluent democratic countries, we know very little about what causes faster or slower growth. Should we throw up our hands in despair? Not necessarily. The upside is that policies and institutions aimed at other outcomes, such as security and fairness, seldom doom the economy to stagnation.
Found in Translation: How Language Shapes Our Lives and Transforms the World by Nataly Kelly, Jost Zetzsche
airport security, Berlin Wall, Celtic Tiger, crowdsourcing, Donald Trump, glass ceiling, Machine translation of "The spirit is willing, but the flesh is weak." to Russian and back, randomized controlled trial, Ray Kurzweil, Skype, speech recognition, Steve Jobs, the market place
It’s the name of an Old Irish harp melody called “Cailín ó cois Stúir mé,” meaning “girl from the banks of the Suir” (the River Suir is located in Tipperary, Ireland).28 Indeed, even King Lear, regarded to be Shakepeare’s finest work, is thought to be based on the older Irish legend, the Children of Lir, which tells the tale of a king deprived of what he believes is his rightful ascendancy over his children and peers. In other words, no Irish-language literature would have meant—you guessed it—no Shakespeare, at least, not as we know him. So what will the fate of this language of such historical importance ultimately be? “Irish is not dying, but evolving with the times,” McLoughlin explains. He believes that during the Celtic Tiger years, many Irish people forgot about their culture and what made them unique as a people. “The argument that Irish is a dying language is one of ignorance,” McLoughlin points out. “It’s no longer the language of fishermen and small farmers in the west of Ireland, but the language of college students, academics, and television personalities,” he notes. “People see it as a token of our identity and a reflection of our national spirit.
Start-Up Nation: The Story of Israel's Economic Miracle by Dan Senor; Saul Singer
agricultural Revolution, Albert Einstein, back-to-the-land, banking crisis, Boycotts of Israel, call centre, Celtic Tiger, cleantech, Dissolution of the Soviet Union, friendly fire, immigration reform, labor-force participation, mass immigration, new economy, pez dispenser, post scarcity, profit motive, Silicon Valley, smart grid, social graph, sovereign wealth fund, Steve Ballmer, web application, women in the workforce, Yom Kippur War
Luck in Entrepreneurship and Venture Capital: Evidence from Serial Entrepreneurs.” Working paper 12592. National Bureau of Economic Research, October 2006. http://imio.haag.berkley.edu/williamsonseminar/scharfstein041207.pdf. Groysberg, Boris, Tal Riesenfeld, and Eliot Sherman. “Israeli Special Forces: Selection Strategy.” Harvard Business School Case 409-041, September 2008. Case Library, Harvard Business Publishing. Haider, Don. “Ireland: Celtic Tiger.” Harvard Business School Case KEL-141, January 2005. Case Library, Harvard Business Publishing. Handwerker, Haim. “U.S. Entrepreneur Makes Aliyah Seeking ‘Next Big Invention.’ ” Haaretz, August 28, 2008. Hari, Johann. “The Dark Side of Dubai.” Independent, April 7, 2009. http://www.independent.co.uk/opinion/commentators/johann-hari/the-dark-side-of-dubai-1664368.html. Horovitz, Jacques, and Anne-Valerie Ohlsson.
The Inequality Puzzle: European and US Leaders Discuss Rising Income Inequality by Roland Berger, David Grusky, Tobias Raffel, Geoffrey Samuels, Chris Wimer
Branko Milanovic, Celtic Tiger, collective bargaining, corporate governance, corporate social responsibility, double entry bookkeeping, equal pay for equal work, fear of failure, financial innovation, full employment, Gini coefficient, hiring and firing, illegal immigration, income inequality, invisible hand, labour market flexibility, labour mobility, Long Term Capital Management, microcredit, offshore financial centre, principal–agent problem, profit maximization, rent-seeking, shareholder value, Silicon Valley, Silicon Valley startup, time value of money, very high income
The Nordic countries are well known for their more egalitarian societies and their Gini scores are indeed correspondingly below the OECD Gini average. However, since the mid-1980s, with the exception of Denmark, they have recorded among the highest increases in Gini coefficients among all OECD countries. Until the financial crisis, Ireland’s rapid growth, more akin to a developing country, earned it the Celtic Tiger moniker. Rapidly developing countries typically experience rising inequality, yet over the same period when all Scandinavian countries saw increasing inequality, Ireland experienced decreasing inequality despite high growth. However, we should be quite cautious when comparing country performances in areas such as inequality because we need more consistent information to make appropriate comparisons.
American Society of Civil Engineers: Report Card, Anton Chekhov, Bob Geldof, Celtic Tiger, clean water, glass ceiling, indoor plumbing, informal economy, job satisfaction, John Snow's cholera map, joint-stock company, land reform, New Urbanism, Potemkin village, Report Card for America’s Infrastructure, Steven Pinker, urban planning
Crypto was a big cuddly version of a parasite called cryptosporidium, a disease-causing protozoa—a single-celled, amoeba-like organism—that can travel in feces. For five months and counting, Crypto and his billions of cousins had been the reason that a rich and developed city in a rich and developed country had no drinking water. A cultural center of Europe, in a land wealthy enough to be nicknamed the Celtic Tiger, was forced to issue boil-water notices more familiar in places of poverty and dust where children die young. It had begun in early March, with reports of persistent stomachaches and diarrhea. There were hospitalizations, of the vulnerable (the old, the young, the immuno-suppressed) and there was bewilderment as to the cause. Something had polluted the drinking-water supply of Lough Corrib.
Austerity: The History of a Dangerous Idea by Mark Blyth
accounting loophole / creative accounting, balance sheet recession, bank run, banking crisis, Black Swan, Bretton Woods, capital controls, Carmen Reinhart, Celtic Tiger, central bank independence, centre right, collateralized debt obligation, correlation does not imply causation, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency peg, debt deflation, deindustrialization, disintermediation, diversification, en.wikipedia.org, ending welfare as we know it, Eugene Fama: efficient market hypothesis, eurozone crisis, financial repression, fixed income, floating exchange rates, Fractional reserve banking, full employment, German hyperinflation, Gini coefficient, global reserve currency, Growth in a Time of Debt, Hyman Minsky, income inequality, information asymmetry, interest rate swap, invisible hand, Irish property bubble, Joseph Schumpeter, Kenneth Rogoff, liberal capitalism, liquidationism / Banker’s doctrine / the Treasury view, Long Term Capital Management, market bubble, market clearing, Martin Wolf, money market fund, moral hazard, mortgage debt, mortgage tax deduction, Occupy movement, offshore financial centre, paradox of thrift, Philip Mirowski, price stability, quantitative easing, rent-seeking, reserve currency, road to serfdom, savings glut, short selling, structural adjustment programs, The Great Moderation, The Myth of the Rational Market, The Wealth of Nations by Adam Smith, Tobin tax, too big to fail, unorthodox policies, value at risk, Washington Consensus, zero-sum game
Ireland reduced its gross government debt-to-GNP ratio from 112 percent in 1986 to 25 percent in 2007, and its net debt to GDP in 2007 stood at a mere 12 percent.27 It was able to do this by exporting to countries that were expanding and by up-skilling its workforce to take advantage of the influx of multinational corporations that were keen to use Ireland, with its English-speaking workforce and low corporate tax rates, as a gateway to a single-market Europe. Ireland’s GNP rose significantly, as did wages, boosting both consumption and tax revenues. The growth of this so-called Celtic Tiger economy during the late 1990s encouraged more people to look to property as an investment, and in doing so Ireland generated a massive banking accident waiting to happen, without a Fannie, a Freddie, or anything like them being present. Part of what stoked the bubble in Ireland had also affected Greece: the bond-buying activities of major European banks, which gave the periphery cheap money, combined with low interest rates set by the ECB that translated into zero, if not negative real rates, in Ireland and Spain from 2000 onward.
Losing Control: The Emerging Threats to Western Prosperity by Stephen D. King
Admiral Zheng, asset-backed security, barriers to entry, Berlin Wall, Bernie Madoff, Bretton Woods, BRICs, British Empire, capital controls, Celtic Tiger, central bank independence, collateralized debt obligation, corporate governance, credit crunch, crony capitalism, currency manipulation / currency intervention, currency peg, David Ricardo: comparative advantage, demographic dividend, demographic transition, Deng Xiaoping, Diane Coyle, Fall of the Berlin Wall, financial deregulation, financial innovation, fixed income, Francis Fukuyama: the end of history, full employment, George Akerlof, German hyperinflation, Gini coefficient, hiring and firing, income inequality, income per capita, inflation targeting, invisible hand, Isaac Newton, knowledge economy, labour market flexibility, labour mobility, liberal capitalism, low skilled workers, market clearing, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, Naomi Klein, new economy, old age dependency ratio, Paul Samuelson, Ponzi scheme, price mechanism, price stability, purchasing power parity, rent-seeking, reserve currency, rising living standards, Ronald Reagan, savings glut, Silicon Valley, Simon Kuznets, sovereign wealth fund, spice trade, statistical model, technology bubble, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Market for Lemons, The Wealth of Nations by Adam Smith, Thomas Malthus, trade route, transaction costs, Washington Consensus, women in the workforce, working-age population, Y2K, Yom Kippur War
The success of the developed world partly rests, then, on freedom of expression and the rule of law (particularly with regard to the establishment of legally enforceable property rights, a point well understood by Adam Smith: the incentive to develop a new product is much reduced if there’s no patent system, for example).14 Meanwhile, contraception has limited population growth in the developed world and, hence, has allowed ever-increasing income to be shared out among the lucky few. Ireland’s Celtic Tiger boom in the 1980s and 1990s was achieved in part because women were able to go out to work rather than staying at home to endure far too many births: contraception can also play a big role in creating economic opportunity. As Sir Isaac Newton might have said, we benefit economically from standing on the shoulders of centuries of creative, inventive and innovative giants. Each giant made his or her own contribution to the advancement of productivity.
How to Speak Money: What the Money People Say--And What It Really Means by John Lanchester
asset allocation, Basel III, Bernie Madoff, Big bang: deregulation of the City of London, bitcoin, Black Swan, blood diamonds, Bretton Woods, BRICs, Capital in the Twenty-First Century by Thomas Piketty, Celtic Tiger, central bank independence, collapse of Lehman Brothers, collective bargaining, commoditize, creative destruction, credit crunch, Credit Default Swap, crony capitalism, Dava Sobel, David Graeber, disintermediation, double entry bookkeeping, en.wikipedia.org, estate planning, financial innovation, Flash crash, forward guidance, Gini coefficient, global reserve currency, high net worth, High speed trading, hindsight bias, income inequality, inflation targeting, interest rate swap, Isaac Newton, Jaron Lanier, joint-stock company, joint-stock limited liability company, Kodak vs Instagram, liquidity trap, London Interbank Offered Rate, London Whale, loss aversion, margin call, McJob, means of production, microcredit, money: store of value / unit of account / medium of exchange, moral hazard, Myron Scholes, negative equity, neoliberal agenda, New Urbanism, Nick Leeson, Nikolai Kondratiev, Nixon shock, Northern Rock, offshore financial centre, oil shock, open economy, paradox of thrift, Plutocrats, plutocrats, Ponzi scheme, purchasing power parity, pushing on a string, quantitative easing, random walk, rent-seeking, reserve currency, Richard Feynman, Richard Feynman, Right to Buy, road to serfdom, Ronald Reagan, Satoshi Nakamoto, security theater, shareholder value, Silicon Valley, six sigma, South Sea Bubble, sovereign wealth fund, Steve Jobs, survivorship bias, The Chicago School, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, trickle-down economics, Washington Consensus, wealth creators, working poor, yield curve
The festival was the brainchild of two brilliant Irishmen, the economist David McWilliams and the comedy producer Richard Cook. The thinking behind it went something like this: Ireland had been bankrupted by its government’s stupid decision to stand behind the debts of the country’s insolvent banks. The consequences in terms of economic collapse were already severe—job losses, pay cuts, tax rises, emigration, a spike in the suicide rate—and were likely to become more so. The economic miracle of the Celtic Tiger had turned into a disaster. Ireland was in a strange mood, a mixture of resignation and fury, alternating between the two feelings so quickly it was almost as if there was a bizarre new hybrid emotion: blazingly furious philosophical resignation. In that atmosphere Cook and McWilliams—McWilliams having been one of the very few Irish economists to have predicted the crash—decided that since the only two things you could really do about the current predicament were laugh or cry, why not laugh?
I, Partridge: We Need to Talk About Alan by Steve Coogan
Hanging up, I slump against the side of the phone box and slide into a heap on the floor, the calling cards of a hundred local whores raining down on me like big drops of prostitute rain. I begin to weep. I have cheated death. I am free. And today? I am stronger, wiser and happy. People assume the episode must have profoundly affected me but I can honestly say it’s not something I ever think about. Move on. (You may now remove your Kevlar body armour.) 157 Press play on Track 30. 158 I’ve got a lot of time for Ireland. Its economy was known as the Celtic Tiger, which I loved. Then, of course, it hit the wall, much like that sleeping dog on YouTube. Very funny. Just type in ‘sleeping dog runs into wall’. If you don’t watch it about ten times back-to-back, there’s something wrong with you. I also like sneezing panda, keyboard cat, dramatic chipmunk, skateboarding dog, otters holding hands and ‘Don’t Taze Me, Bro’. 159 Each to his own and all that, but the idea of a man looking at my rock-hard buttocks and salivating makes me want to run home and dead-lock the doors.
Bayesian statistics, business intelligence, business process, cellular automata, Celtic Tiger, cloud computing, collateralized debt obligation, conceptual framework, congestion charging, corporate governance, correlation does not imply causation, crowdsourcing, discrete time, George Gilder, Google Earth, Infrastructure as a Service, Internet Archive, Internet of things, invisible hand, knowledge economy, late capitalism, lifelogging, linked data, Masdar, means of production, Nate Silver, natural language processing, openstreetmap, pattern recognition, platform as a service, recommendation engine, RFID, semantic web, sentiment analysis, slashdot, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, smart grid, smart meter, software as a service, statistical model, supply-chain management, the scientific method, The Signal and the Noise by Nate Silver, transaction costs
., Fotheringham, S. and Lloyd, C. (2007) ‘Joined-up thinking across the Irish border: making the data more compatible’, Journal of Cross Border Studies, 2: 22–33. Kitchin, R., Gleeson, J. and Dodge, M. (2012a) ‘Unfolding mapping practices: a new epistemology for cartography’, Transactions of the Institute of British Geographers, 38(3): 480–96. Kitchin, R., O’Callaghan, C., Boyle, M., Gleeson J. and Keaveney, K. (2012b) ‘Placing neoliberalism: the rise and fall of Ireland’s Celtic Tiger’, Environment and Planning A, 44: 1302–26. Koops, B.J. (2011) ‘Forgetting footprints, shunning shadows: a critical analysis of the “right to be forgotten” in big data practice’, SCRIPTed, 8(3): 229–56. Kourtit, K., Nijkamp, P. and Arribas-Bel, D. (2012) ‘Smart cities perspective – a comparative European study by means of self-organizing maps’, Innovation, 25(2): 229–46. Kuhn, T. (1962) The Structure of Scientific Revolutions.
The Virgin Way: Everything I Know About Leadership by Richard Branson
barriers to entry, call centre, carbon footprint, Celtic Tiger, clean water, collective bargaining, Costa Concordia, Donald Trump, Elon Musk, friendly fire, glass ceiling, illegal immigration, index card, inflight wifi, Lao Tzu, low cost carrier, M-Pesa, Mahatma Gandhi, Mark Zuckerberg, Northern Rock, profit motive, Ralph Waldo Emerson, Ronald Reagan, shareholder value, Silicon Valley, stem cell, Steve Jobs, Tesla Model S, trade route, zero-sum game
American property magnate Donald Trump is another controversial character who seems to be either loved or hated by the consumer and is perhaps most famous for his ‘You’re fired’ line, something he seems to delight in telling people on his TV show The Apprentice. Unlike both these very successful gentlemen I have always believed there are tremendous upsides to a more conciliatory approach to life and business – an attitude that even Michael O’Leary is now publicly proclaiming he wants his much-maligned airline to assume, although it remains to be seen whether or not this particular Celtic Tiger can change his stripes. I’m not a betting man, but if I were, I’m not at all sure I would put money on this one! While I wouldn’t be foolish enough to pretend that Virgin’s three airlines have never had passengers with valid complaints or that I have never fired anyone, I can honestly say that, unlike Mr Trump, the latter is not something I have ever taken the slightest pleasure in doing.
Immigration worldwide: policies, practices, and trends by Uma Anand Segal, Doreen Elliott, Nazneen S. Mayadas
affirmative action, Asian financial crisis, Berlin Wall, borderless world, British Empire, Celtic Tiger, centre right, conceptual framework, credit crunch, demographic transition, deskilling, en.wikipedia.org, European colonialism, Fall of the Berlin Wall, financial independence, full employment, global village, guest worker program, illegal immigration, immigration reform, income inequality, income per capita, informal economy, knowledge economy, labor-force participation, labour market flexibility, labour mobility, low skilled workers, mass immigration, minimum wage unemployment, moral panic, New Urbanism, open borders, phenotype, South China Sea, structural adjustment programs, trade route, transaction costs, upwardly mobile, urban planning, women in the workforce
Finally, citizens of Iceland, Liechtenstein, and Norway do not require permits to work in Ireland, as these countries together with the member states of the EU form the European Economic Area (EEA). The significant increase in the number of labor migrants coming to Ireland since the mid-1990s is largely the result of the demand for workers during a period of economic growth commonly known as the ‘‘Celtic Tiger.’’ Thus Quinn (2006a, p. 5) notes that ‘‘the growth in immigration and the drop in emigration experienced in Ireland are trends that are mainly attributable to domestic economic development. It is now accepted that the boom, in what became known as the era of the ‘‘Celtic Tiger,’’ resulted in real growth rates in excess of 8 percent per annum during the second half of the 1990s and an increase of nearly 400,000 jobs, or almost 30 percent, from 1.3 million in 1996 to 1.7 million in 2001.’’ Quinn and O’Connell (2007, p. 4) further note, ‘‘The economic boom of the past two decades or so have, particularly in the past decade, led to a dramatic increase in employment demand.
3D printing, Airbnb, Asian financial crisis, bank run, banking crisis, barriers to entry, Basel III, battle of ideas, Berlin Wall, Big bang: deregulation of the City of London, Bretton Woods, BRICs, British Empire, business process, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Celtic Tiger, central bank independence, centre right, cleantech, collaborative consumption, collapse of Lehman Brothers, collective bargaining, corporate governance, creative destruction, credit crunch, Credit Default Swap, crony capitalism, currency manipulation / currency intervention, currency peg, debt deflation, Diane Coyle, Downton Abbey, Edward Glaeser, Elon Musk, en.wikipedia.org, energy transition, eurozone crisis, fear of failure, financial deregulation, first-past-the-post, forward guidance, full employment, Gini coefficient, global supply chain, Growth in a Time of Debt, hiring and firing, hydraulic fracturing, Hyman Minsky, Hyperloop, immigration reform, income inequality, interest rate derivative, Intergovernmental Panel on Climate Change (IPCC), Irish property bubble, James Dyson, Jane Jacobs, job satisfaction, Joseph Schumpeter, Kenneth Rogoff, labour market flexibility, labour mobility, liquidity trap, margin call, Martin Wolf, mittelstand, moral hazard, mortgage debt, mortgage tax deduction, North Sea oil, Northern Rock, offshore financial centre, oil shale / tar sands, oil shock, open economy, peer-to-peer rental, price stability, private sector deleveraging, pushing on a string, quantitative easing, Richard Florida, rising living standards, risk-adjusted returns, Robert Gordon, savings glut, school vouchers, self-driving car, sharing economy, Silicon Valley, Silicon Valley startup, Skype, smart grid, smart meter, software patent, sovereign wealth fund, Steve Jobs, The Death and Life of Great American Cities, The Wealth of Nations by Adam Smith, too big to fail, total factor productivity, Tyler Cowen: Great Stagnation, working-age population, Zipcar
The cost of flights within the Europe has plunged: it is thanks to the EU that Ryanair can fly freely anywhere in Europe. Using your mobile phone in another EU country is less exorbitant. Your taxes stretch further because big government contracts have been opened up to competitive tendering, generating better value for money. For some countries, the EU’s single market has been transformational: thanks in large part to foreign investment attracted by its access to the EU market (and its low taxes), Ireland’s Celtic tiger economy leapt from poverty to prosperity within two decades. Freedoms that were unimaginable thirty years ago – that five hundred million people could move freely across the EU, from Lisbon to Lithuania and Leipzig to Liverpool – now seem normal. Asked what the EU means to them personally, Europeans’ top answer is the freedom to travel, study and work anywhere in the Union.735 The EU’s Charter of Fundamental Rights enshrines Europeans’ basic freedoms.
The Health Gap: The Challenge of an Unequal World by Michael Marmot
active measures, active transport: walking or cycling, Affordable Care Act / Obamacare, Atul Gawande, Bonfire of the Vanities, Broken windows theory, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Celtic Tiger, centre right, clean water, congestion charging, correlation does not imply causation, Doha Development Round, epigenetics, financial independence, future of work, Gini coefficient, Growth in a Time of Debt, illegal immigration, income inequality, Indoor air pollution, Kenneth Rogoff, Kibera, labour market flexibility, lump of labour, Mahatma Gandhi, meta analysis, meta-analysis, microcredit, New Urbanism, obamacare, paradox of thrift, race to the bottom, Rana Plaza, RAND corporation, road to serfdom, Simon Kuznets, Socratic dialogue, structural adjustment programs, the built environment, The Spirit Level, trickle-down economics, urban planning, Washington Consensus, Winter of Discontent, working poor
One obvious mechanism is through unemployment, which, as summarised in Chapter 6, has an adverse impact on mental illness and on suicide rates. It also has an impact on the homicide rate. It is not too melodramatic to say that policies of austerity are leading people to take their own lives, and also to kill each other. Terminal 2 at Dublin airport is somehow symbolic of what Ireland has been through. The terminal is a wonderful testament to a once booming economy, built to be suitable for a Celtic Tiger, an economy that was going places. When I travel through Terminal 2 now, its echoing halls seem to represent the downside, the hollowness of the promise that the people of Ireland could be rich by lending each other money they didn’t have.8 A taxi driver shakes your hand, so pleased is he to have any business. In Dublin itself, ‘To Let’ signs on empty office buildings, deserted restaurants and pubs half full are signs of what happens when a growth economy collapses.
Chaos Monkeys: Obscene Fortune and Random Failure in Silicon Valley by Antonio Garcia Martinez
Airbnb, airport security, always be closing, Amazon Web Services, Burning Man, Celtic Tiger, centralized clearinghouse, cognitive dissonance, collective bargaining, corporate governance, Credit Default Swap, crowdsourcing, death of newspapers, drone strike, El Camino Real, Elon Musk, Emanuel Derman, financial independence, global supply chain, Goldman Sachs: Vampire Squid, hive mind, income inequality, information asymmetry, interest rate swap, intermodal, Jeff Bezos, Malcom McLean invented shipping containers, Marc Andreessen, Mark Zuckerberg, Maui Hawaii, means of production, Menlo Park, minimum viable product, move fast and break things, move fast and break things, Network effects, Paul Graham, performance metric, Peter Thiel, Ponzi scheme, pre–internet, Ralph Waldo Emerson, random walk, Ruby on Rails, Sand Hill Road, Scientific racism, second-price auction, self-driving car, Silicon Valley, Silicon Valley startup, Skype, Snapchat, social graph, social web, Socratic dialogue, source of truth, Steve Jobs, telemarketer, urban renewal, Y Combinator, zero-sum game, éminence grise
As part of my role as shit umbrella/product manager for ads targeting, I had the unwelcome duty to be in on every call and meeting with some guy named Gary, who was evidently the one-man data protection office there. How the land of suffocating Catholicism and potato famines came to be the regulator of the biggest accumulation of personal data since DNA is a curious story. Ireland, following its rise as the “Celtic Tiger” in the mid-aughts and subsequent property crash, actively encouraged American companies to choose Dublin as their European base. Ireland offered tax incentives (the corporate tax rate was very low), an educated (and desperate for work) talent pool, and a rational legal framework. The net result was that the waterfront docks east of Dublin became colonized by US tech companies like Facebook, Google, and Airbnb, each running (mostly) its sales and operations teams out of gleaming new high-rise offices.
Asian financial crisis, asset-backed security, balance sheet recession, bank run, banking crisis, Basel III, Ben Bernanke: helicopter money, Berlin Wall, Big bang: deregulation of the City of London, British Empire, capital controls, carbon footprint, Celtic Tiger, central bank independence, centre right, collapse of Lehman Brothers, credit crunch, Credit Default Swap, crony capitalism, dark matter, deindustrialization, Deng Xiaoping, disintermediation, energy security, Eugene Fama: efficient market hypothesis, eurozone crisis, financial deregulation, financial innovation, financial repression, floating exchange rates, forensic accounting, forward guidance, full employment, G4S, ghettoisation, global rebalancing, global reserve currency, hiring and firing, inflation targeting, Irish property bubble, Just-in-time delivery, labour market flexibility, light touch regulation, London Whale, Long Term Capital Management, margin call, market clearing, megacity, Mikhail Gorbachev, mini-job, mittelstand, moral hazard, mortgage debt, mortgage tax deduction, mutually assured destruction, Myron Scholes, negative equity, North Sea oil, Northern Rock, offshore financial centre, open economy, paradox of thrift, Pearl River Delta, pension reform, price mechanism, price stability, profit motive, quantitative easing, quantitative trading / quantitative ﬁnance, race to the bottom, regulatory arbitrage, reserve currency, reshoring, Right to Buy, rising living standards, Ronald Reagan, savings glut, shareholder value, sovereign wealth fund, The Chicago School, the payments system, too big to fail, trade route, transaction costs, two tier labour market, unorthodox policies, uranium enrichment, urban planning, value at risk, working-age population, zero-sum game
The ‘two Brians’ (finance minister Lenihan and Taioseach Cowen) felt that having funded their sovereign borrowing requirements until mid-2011 there was no need for the dead hand of the inspectors. If a programme was needed, they felt they had maximum bargaining power to limit their loss of sovereignty. That seemed to be mainly defined by keeping Ireland’s 12.5 per cent rate of corporation tax, the lowest in the Eurozone, and a totem of the Celtic Tiger. The policy had attracted tech giants such as Apple, Google and Microsoft, as well as Europe’s bankers. ‘Corporation tax had to be got off the agenda before we’d even start talking,’ said one Dublin official. ‘We made no bones about talking about being fully funded in mid-2011. With a bank run on, it wasn’t really in our interests to prolong it, but we could hold out for longer.’ Secret, plausibly deniable, negotiations had started with Brussels commissioner Olli Rehn in September 2010.
A History of Future Cities by Daniel Brook
Berlin Wall, British Empire, business process, business process outsourcing, call centre, carbon footprint, Celtic Tiger, collateralized debt obligation, collective bargaining, Credit Default Swap, credit default swaps / collateralized debt obligations, Deng Xiaoping, desegregation, Edward Glaeser, Fall of the Berlin Wall, financial innovation, glass ceiling, indoor plumbing, joint-stock company, land reform, Mikhail Gorbachev, New Urbanism, open economy, Parag Khanna, Pearl River Delta, Potemkin village, profit motive, rent control, sovereign wealth fund, special economic zone, trade route, urban planning, urban renewal, working poor
The apotheosis of this trend would come in 2009, when the dictator of Azerbaijan amassed nine waterfront mansions during a two-week, $44 million buying spree—all purchased in the name of his eleven-year-old son. With the unprecedented land reform in place, the global real estate consulting firm Jones Lang LaSalle touted Dubai, along with Dublin and Las Vegas, as its “World Winning Cities” for 2002. The report put Dubai on global investors’ maps alongside the better-known capital of the Celtic Tiger and the Mojave Desert outpost that was then the fastest-growing city in the world’s largest economy. All three cities experienced massive booms, but Dubai’s was the most explosive. If early St. Petersburg was a Renaissance perspective drawing brought to life on a marshy tabula rasa, Dubai was a real-life SimCity, a fantastical metropolis that looked as if it had magically leapt from an architect’s laptop running the latest computer-assisted design software out onto the pristine desert.