Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/126406
Authors: 
Gärtner, Manfred
Griesbach, Björn
Mennillo, Giulia
Year of Publication: 
2013
Citation: 
[Journal:] Intereconomics [ISSN:] 1613-964X [Publisher:] Springer [Place:] Heidelberg [Volume:] 48 [Year:] 2013 [Issue:] 6 [Pages:] 358-365
Abstract: 
This article narrates Ireland's recent odyssey from the pride and envy of Europe to kneeling supplicant through the eyes of an econometric model of the government bond market. The exercise suggests that, in essence, two developments triggered and propelled Ireland's drift towards sovereign default: first, the global financial crisis that drove Ireland into a severe recession with collapsing tax revenues and increasing unemployment; second, a gap between the post-2007 increase in sovereign default risk that can actually be linked to macroeconomic fundamentals and the much bigger increase in perceived risk reflected by high interest rates and communicated by the massive downgrades of Ireland's sovereign debt rating.
Persistent Identifier of the first edition: 
Document Type: 
Article

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