Ireland is the third-largest island in Europe which located in the north-west of continental Europe.

The countrys official name is the Republic of Ireland. Besides, Dublin is the capital and largest city among 26 districts. Irish use Gaelic and English as their main official languages. According to Irish Links (n.d.), Ireland has a modern and business-friendly economy where the country is rely on foreign direct investment from major high-technology and service manufacturers such as Intel, Google and Pfizer. As a result, Ireland is one of the worlds largest exporters of pharmaceuticals and software. Fontes (2013) indicates that from 1995 to 2007, the GDP of Ireland growth averaged 6 percent had earned the country the nickname of Celtic Tiger which resulted by its rapid economic expansion. On the other hand, the main areas of business activities of Ireland are development, trade and energy and transport. In the area of development, the Irish economy has transformed from being mainly focus on agricultural to a modern knowledge economy where it concentrated on high technology and services industries. Furthermore, Ireland is one of the biggest exporters of pharmaceutical and software-related goods and services in the world which is the seventh largest producer of zinc concentrates, and the twelfth largest producer of lead concentrates. Moreover, transport also one of the main business activities in Ireland. For instance, railway services provided by Iarnrd ireann and it operate in all internal intercity, commuter and freight railway services. The population of the island of Ireland in 2012 was approximately 6.5 million comprising 4.72 million in the Republic of Ireland with another 1.8 million in Northern Ireland. According to Minihan (2013), Enda Kenny, an Irish Fine Gael politician where he speaking at a press conference to mark the Coalitions second year in office where two-thirds of its programme for government had been progressed satisfactorily. This is because they have a sense of stability has returned to the country. He also mentioned that they will do more to accelerate a solution to the mortgage crisis so that as many individuals and families as possible are offered sustainable solutions. Currency in the Ireland was come into used by 1 January 2002 so called as euro where the symbol is . This symbol [] is the most common currency which shared by 28 countries of European Union. As stated in European Central Bank (2009), the euro currency has adopted a floating exchange rate regime where it determined by the market. Yet, those countries including Ireland also have to conduct an exchange rate policy to prevent public intervention and inadequate structural
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policies in a neighbouring country. In addition to that, according to Bowring (2010), when the Asian Financial Crisis was eventually resolved, foreign banks had to absorb huge losses. That was relatively easy for Asia because the debts were mostly owed by bankrupt private-sector companies but Europe has a bigger problem because the debt is mostly public because for Europe, public debts are the focus because most of the debt is in their own currency, the Euro. Before the Global Financial Crisis, the fiscal position of Ireland was very strong due to rising of productivity. Besides, the unemployment rate was decline until around 4 percent where the economy already viewed as the full employment, according to The Economic and Social Research Institute. In economic activity on consumer prices, the Irish economy recorded relatively high inflation rates combined with above very low unemployment rate. Moreover, annual inflation in consumer prices, as measured by the Consumer Price Index, stated that the average price level increased by 34.7 percent between 2000 and 2008. Other than that, the credit facilities of Irish were influenced by the speculative bubble in property where it supported by a wave in bank lending. As a result, the balance sheets of Irish banks grew incomparable large in relative to the size of the economy. This is because the banks had traditionally relied on their deposit base to fund their lending activity. European Commission stated that Ireland enjoyed strong economic growth from 1990 to 2007. There were two main elements behind this. Firstly, good demographics gave rise to an increase in the number of workers entering the labour market. Secondly, an improvement in the educational level of the labour force stated that these new workers had higher productivity than their past seniors. Still, the arrival of the European Union had made Ireland an attractive location for foreign investment, especially from the US which helped boost the Irish exports. On the other hand, there are several impacts which Ireland had to experience after Global Financial Crisis. Firstly, the tremendous decline impacted in migration flow. Because of the economic downturn, the migration rate had changed from positive into negative due to Irish and non-Irish citizens were leaving the country. Secondly, the growth and unemployment Ireland economy was turned recession in 2008. In the earlier period, the Irish economy notable high inflation rates combined with a very low unemployment rate. But since experienced the recession, the Irish economy deepened consumer prices fell dramatically combined with a very high unemployment
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rate with just below 15 percent. Besides, a balance of payments crisis turns into a currency crisis when the government is no longer able to defend the fixed exchange rate but Ireland was not initially affected more than other countries because of capital transfers from Euro-area partners have allowed them to finance current account deficits. (Hale 2013) Given its membership of the European Monetary Union (EMU), Ireland did not suffer a currency crisis, experiencing instead an internal devaluation. As the crisis erupted, the governments immediate concern was to stabilise the banking system where it decided to issue a complete guarantee of the banks liabilities and to recapitalize them using public funds. The large costs of these steps led to a rapid deterioration in the governments fiscal position. According to European Commission (2012), although the government began to implement simple methods prepared to restore sustainability to its public finances, it was also facing an intense struggle. This is because international investors became worried about the impact of increasing bank losses on the governments balance sheet, yet risk spreads rose sharply on Irish sovereign debt. However, the Government do negotiated a financial assistance package from the European Union to help in buffering the boom which Irelands economy and public finances had suffered.