Wednesday, November 17, 2010

Irish Crisis - Good Graphs

The German on-line magazine Spiegel has a series of good charts showing the problems in Ireland and comparing the Irish situation to the rest of the euro-zone. Here is the interesting part - clearly Ireland is in trouble with high unemployment and a very high deficit (30% of GDP), but its overall debt to GDP is low (lower than Germany's). So, why is this a sudden crisis? Why is there a sudden jump in Irish interest rates?
Look at the charts:




































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