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Recalling the Celtic Tiger

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Edited By Eamon Maher, Eugene O'Brien and Brian Lucey

This book looks at various effects, symptoms and consequences of the period in Irish culture known as the Celtic Tiger. It will trace the critical pathway from boom to bust – and up to the current beginnings of a similar, smaller boom – through events, personalities and products. The short entries offer a sense of the lived experience of this seismic period in contemporary Irish society.

While clearly not all aspects of the period could realistically be covered, the book does contain essential information about the central actors, events, themes, and economic trends, which are discussed in a readable and accessible manner. Each entry is linked to the overall Celtic Tiger phenomenon and its immediate aftermath.

The book also provides a comprehensive account of what happened in this period and will be a factual resource for anyone anxious to discover information on the areas most commonly connected to it. All entries are written by experts in the area. The contributors include broadcasters, economists, cultural theorists, sociologists, literary critics, journalists, politicians and writers, each of whom brings particular insights to some aspect of the Celtic Tiger.

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Target2 Balances (Frances Coppola)

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Frances Coppola

Target2 Balances

Target2 is the Euro’s real-time gross settlement system. All Euro payments, except for physical cash, settle via Target2. That includes exports from one Eurozone country to another; transactions in Euro-denominated financial instruments such as bonds and stocks; remittance payments from foreign workers in, say, Germany, to their families in other Eurozone countries; movement of bank deposits from one country to another (‘capital flight’). All of these payment types are settled via Target2.

Since every payment has a payer and a payee, the total flow of money across Target2 nets to zero, but the bilateral flows between Eurozone countries do not. There can be a net inflow to, say, Germany, which is balanced by net outflows from, say, Italy, Spain and Greece. If a country has persistent net inflows, it accumulates a positive balance, known as a ‘claim’, in Target2: similarly, a country that has persistent net outflows accumulates a negative balance, or ‘liability’, in Target2. You can think of these Target2 balances as an accounting representation of the balance of payments between the countries of the Eurozone. Any country with a current account surplus vis-a-vis the rest of the Eurozone will have a net Target2 claim: conversely, any country with a current account deficit will have a net Target2 liability.

Over time as economic convergence moves forward Target2 balances should fluctuate around zero. However, over the last decade, balances have at times become very large. ‘Core’ Eurozone countries...

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