The Cyclical Conduct of Irish Fiscal Policy

Authors


  • This is a revised version of the paper presented at the Irish Economy conference at Lehigh University, 7–8 April 2011. We thank Brendan Kennelly and the conference participants for helpful feedback. Email: benetria@tcd.ie; plane@tcd.ie.

Abstract

This paper provides an overview of the cyclical conduct of fiscal policy in Ireland both before and during the crisis. It shows that fiscal policy has been procyclical, with financial shocks amplifying the fiscal cycle. In addition, it highlights the importance of institutional reform and outlines the case for a formal fiscal framework.

Ancillary