Ireland's innovative bond exchange
The Celtic tiger is a good nickname for Ireland's economy which continues to roar ahead. Unfortunately, like the tiger economies of south-east Asia, rapid growth rates can bring troubles in their wake. Ireland - which has had almost double-digit GDP growth for each of the last five years - now has to try to curb incipient inflation.
The trouble for Ireland is that interest rates are set elsewhere and the present euro zone rate at 3% is too low. Maurice O'Connell, governor of the Central Bank of Ireland, admits that with rates set by the European Central Bank, his hands are tied. "The Irish economy is at a very different stage of the cycle to everyone else in Emu. So, what may be good for the euro zone as a whole may not necessarily be to Ireland's advantage," he says.
"It will take some time to see the...
