The US and Irish Credit Crises: Their Distinctive Differences and Common Features

24 Pages Posted: 9 Mar 2010

See all articles by Gregory Connor

Gregory Connor

National University of Ireland, Maynooth (NUI Maynooth) - Department of Economics

Thomas Flavin

National University of Ireland, Maynooth (NUI Maynooth) - Department of Economics, Finance and Accounting

Brian G. O'Kelly

Dublin City University

Date Written: March 8, 2010

Abstract

Although the US credit crisis precipitated it, the Irish credit crisis is an identifiably separate one, which might have occurred in the absence of the U.S. crash. The distinctive differences between them are notable. Almost all the apparent causal factors of the U.S. crisis are missing in the Irish case; and the same applies vice-versa. At a deeper level, we identify four common features of the two credit crises: capital bonanzas, irrational exuberance, regulatory imprudence, and moral hazard. The particular manifestations of these four “deep” common features are quite different in the two cases.

Keywords: credit crisis, Irish economy, bank regulation

JEL Classification: E44, E58, F33, G21, G28

Suggested Citation

Connor, Gregory and Flavin, Thomas J and O'Kelly, Brian G., The US and Irish Credit Crises: Their Distinctive Differences and Common Features (March 8, 2010). Available at SSRN: https://ssrn.com/abstract=1566844 or http://dx.doi.org/10.2139/ssrn.1566844

Gregory Connor (Contact Author)

National University of Ireland, Maynooth (NUI Maynooth) - Department of Economics ( email )

County Kildare
Ireland

Thomas J Flavin

National University of Ireland, Maynooth (NUI Maynooth) - Department of Economics, Finance and Accounting ( email )

County Kildare
Ireland
+353 1 708 3369 (Phone)
+353 1 708 3934 (Fax)

Brian G. O'Kelly

Dublin City University ( email )

Ireland 9
Dublin 9, leinster 9
Ireland

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