The significance of the crisis in Ireland and the problems in other economies on the fringes of Europe is potentially far wider than their small size would suggest. The exposure of global financial institutions to the likes of Ireland is relatively well-known and manageable, at least compared to the fall-out from the collapse of the mortgage-backed securities market in 2008. However, uncertainty about the future of the euro itself will remain high, undermining business confidence and risk appetite generally. Renewed safe haven demand for the dollar could also accelerate any correction in global commodity prices.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services