Question

• What factors led to the present financial crisis in Europe, especially in Greece and Ireland. Discuss the differences between the Greek and Irish economies.

Answer 1

Difference between the Greek and Irish economies are:

Greece and Ireland differ in terms of an economy where Ireland contains GDP of $78806 per capita while Greece is having $20324 per capita.

The percentage of unemployed adults in Ireland is 5.4% while Greece poses a 16.3% and in terms of standards of living.

Ireland has 8.2% of its people living below the poverty line while Greece has 36.0% below the poverty line.

Some of the factors that led to the so being financial crisis in Ireland and Greece include rising household and debt levels of the government, trade imbalance, monetary policy inflexibility, and loss in confidence in themselves. All these factors have played a role in making the government in these countries devalue their currency national wise or even make them borrow money from the international monetary funds and other known institutions related to it.