Discussion paper

DP18582 Distinctive Features of the Irish Banking Crisis

The paper reviews the causes, evolution and resolution of the severe property-related macro-financial boom and bust that crippled the Irish economy 2008-13. Among the distinctive features were a blanket government guarantee of banking liabilities, a run on the national banking system financed by a supranational central bank, and a sovereign-bank funding-cost doom loop. There were missteps in both the private and official sectors, at home and abroad, as the authorities felt their way towards corrective policies that were ultimately effective.


Honohan, P (2023), ‘DP18582 Distinctive Features of the Irish Banking Crisis‘, CEPR Discussion Paper No. 18582. CEPR Press, Paris & London. https://cepr.org/publications/dp18582