3 Sovereign Debt Crisis --- Ireland (all)
經濟, 咩原因點樣導致呢個危機…why it collapsed
經濟層面: 2000 開始的房地產泡沫, 人口大增
之後, 泡沬爆破…失業率攀升, GDP, GNP降, 女性出來工作的人數多, 通貨膨脹, CPI, 消費物價指數, Government debt, 債務佔GDP幾多? TAX, Keynesian model,
Irish Economy is small but developed well. Mostly rely on export. The key drivers of Irish economy are construction industry and financial industry. Services are the largest part of output. It got an economic growth at 10% during 1995 to 2000. The reason why it can grow up rapidly is Ireland is low down its tax rate to attract foreign capital to invest in her country. In 2003, tax rate is around 12.5 percent. Besides, Ireland keeps a plenty of trade surplus. This means Ireland is too relied on exports. These made a bubble in property.
When subprime crisis came, nobody wanted to buy things. It hurt construction industry and financial industry. Banking industry bear a huge amount of bad debts indirectly as construction industry collapses. Therefore, banking industry is facing in a great crisis.
Irish construction was dominated by housing property. From figure 6, we can see that the difference between Ireland and US in housing price was really high. The peak point was at 2006 which was two times of 2000. At the peak, the unemployment rate was around 4.4. In figure 5 and figure 8, supported by the housing boom, the labor market on the construction industry was strong that many people can get a job.
When subprime crisis appeared, construction industry has fallen by 23%. Naturally, Housing property got a hard blow as construction industry collapsed. Unemployment rate was increased to around 7 according to figure 3. From the figure 5(Labor Force Participation rate), we can see that there was a peak at 2008. It also showed that women were forced to come out to have a job since the economy was bad. Irish was in a recession. It was because Ireland relied on construction industry. Therefore, the tax revenues (include income taxes and Stamps and...