Yet despite cutbacks and tax rises, the country still chalked up a 1.3 per cent expansion in gross domestic product in the first three months of this year.
There is more here, and also here, maybe best of all is here. Mind you, this is not a stunning performance. Nor can we expect it to continue, if the eurozone and America are headed for broader troubles, as indeed appears to be the case. Nonetheless it’s a result which most Keynesian theories very strongly predicted against. Ireland also achieved this during a weak time for its major trading partners. Since the crisis started, Ireland’s cumulative adjustment has been about thirteen percent of gdp and now they are growing again. Yet we are not hearing a peep about this.