A look at the Celtic Tiger and Greece

Morgan Kelly over at Vox takes up the question of what Ireland should do about it’s looming banking crisis in this peice:

Whatever happened to Ireland? | vox – Research-based policy analysis and commentary from leading economists

Paul Krugman also discusses the case of Greece, this time to disprove those that would use the analogy to further dismantle the US’s welfare state.

I think Krugman’s argument also may apply to more a limited degree to Ireland; there has been a lot of wealth created in a short amount of time. It can withstand taking on some debt. But it’s not as large and economy as the US’s and can’t take on as much as it probably will have to bail out its banks.