Earlier in the week, I wrote a post on Spain which explained why there is limited applicability of Latvia's travails with austerity for larger economies in the euro zone like Spain. This is irrespective of whether one views Latvia as an austerity failure or a success. One place where Latvia does have applicability, however, is Ireland. In both cases you have an economy that was overheated and wracked by the excesses of a housing bubble. When these bubbles popped, it left a wake of bad private sector debt. In both cases, the response was austerity and asset writedowns, with the result being a huge economic contraction. But both of these economies have since begun to grow.
Ireland has been a standout within the euro zone, especially in the manufacturing sector. When the euro zone PMIs came ...
As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.
Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.