This Selected Issues paper discusses Irelandas trade and financial linkages with key partner countries. The paper uses a vector autoregression to examine the impact of shocks to partner country GDP and shocks to Irish competitiveness on Irish GDP. Two main findings are that shocks to U.S. GDP have a much larger impact on the variance of Irish GDP than shocks to the euro area or the United Kingdom. The paper also uses the IMFas Global Fiscal Model to compare the effects of alternative fiscal adjustment strategies on employment and growth.References Baxter, M., and M. Kouparitsas, 2004, aDeterminants of Business Cycle Comovement: A Robust Analysis, a ... E. Prasad, and M.E. Terrones, 2003a, aHow Does Globalization Affect the Synchronization of Business Cycles, a IMFanbsp;...
|Author||:||International Monetary Fund|
|Publisher||:||International Monetary Fund - 2007-09-24|