What about Ireland? That’s what some people have been asking me; they’re under the impression that Ireland is a success story for austerity, and that this success is somehow a refutation of the broadly Keynesian account of the economy I’ve been giving. So I guess some clarification is in order.
Everyone wants Ireland to be a good-news story, proof that a willingness to take the pain of prolonged austerity will be rewarded in the end. Ordinary citizens are hungry for some hope.