As Philip Lane of Trinity College notes: “There was a genuine Irish economic miracle, with very rapid output, employment and productivity growth during the 1994-2000 period.” Without entry into the eurozone, this might have petered out. But the fall in interest rates increased the risk that a credit-fuelled property bubble would emerge. So, indeed, it did.
Prof Lane observes: “The flavour of this boom was very different to the ‘Celtic Tiger’ years. In particular, it was dominated by a surge in construction activity.” Moreover, this “expansion in property investment was fuelled by rapid credit expansion”, not just to the household sector, but also to a “small group of property developers”."
Prof Lane observes: “The flavour of this boom was very different to the ‘Celtic Tiger’ years. In particular, it was dominated by a surge in construction activity.” Moreover, this “expansion in property investment was fuelled by rapid credit expansion”, not just to the household sector, but also to a “small group of property developers”."
