18 October 2011


Just researching the policymaking behind the Irish 2008 "Guarantee Everything" policy and found this nugget. In the one page statement announcing the plan they cite the "international market" turmoil twice as the cause of the 2008 crisis in Ireland (US subprime induced credit crunch -> tightening liquidity markets, yada yada yada).

Not once is the massive domestic real estate bubble mentioned! Sure this doesn't reveal policymakers' total knowledge (they could just not mention the problem, while knowing it exists), but still.

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