Wednesday, September 30, 2015

Celtic Tiger Redux?

It seems that Ireland has recovered from the economic crash.  Exports seem to be surging, despite the condition of the rest of Europe.  And it looks as if the Aggregate Supply curve is sloping up. Considering how long Ireland was one of the poorest countries in Europe, primarily, perhaps, the legacy of DeValera's self-sufficiency policy, its experience should give a boost to the neoclassicals among us.

I've been reading Mark Nolan's book "Keynes in Dublin" which deals with JMK's 1933 Finlay lecture on self-sufficiency.  There are bits in it where I think Nolan is stretching his argument a bit, but overall it's well worth reading.