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How the Financial Crisis of 2008 and Regulation impacted on economies around the world: A comparative analysis between Ireland and Israel, two countries of similar size and booming economy

Drozan, Irina (2020) How the Financial Crisis of 2008 and Regulation impacted on economies around the world: A comparative analysis between Ireland and Israel, two countries of similar size and booming economy. Masters thesis, Dublin, National College of Ireland.

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Abstract

The global economic crisis of 2008 exposed countless irregularities within financial institutions in many developed countries, including Ireland and Israel. The main factors were poor regulation, bad behaviour on the part of senior executives, weak corporate governance structure within organisations, political and operational factors. In other words, a “myriad of decisions both large and small, including decisions not to act, all underpinned by implicit and explicit assumptions, led to the global financial crisis and how catastrophic its effects were in Ireland, (Sibley, Deputy Governor of CBI, 2018). However, while Ireland was severely impacted by the crisis, in Israel, “the effects were more moderate than other advanced economies, due to the background conditions that were prevalent at the time” (Buchwald, 2009), and especially due to the country’s robust regulation.

The aim of this study is to compare-and-contrast regulation in Israel and Ireland equally whilst analysing the procedures and regulatory pillars to emphasis the crucial differences between the two. These are countries of similar size and small population, both very dependent on trade which experienced sudden economic growth preceding the crisis. Overall, the research will scrutinize the argument that a state with stronger and proactive regulations in place which are actively enforced suffered less financially than a state where supervision and enforcement of financial regulation was weak or even non-existent. To corroborate my research, I will examine the regulatory changes that came with the crisis, more than a decade on, in both Ireland and Israel, aimed at “stopping a boom and preventing the credit-chasing, prices-chasing kind of bubble”, (Honohan, 2010).

The grounds for comparison anticipate the comparative nature of my thesis but the thesis depends on how the two countries I choose to compare relate to one another. In order to achieve an answer to my research question, this study is analytical in nature and it depends on desk research, using prior literature that includes articles, regulator website information, statements and official reports, to analyse and conclude my findings.

Keywords: Financial Crisis of 2008, Ireland and Israel, Compare-and-Contrast, Effective Financial Regulation, Similarities and Differences

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HB Economic Theory > Business Cycles. Economic Fluctuations
H Social Sciences > HC Economic History and Conditions > Economic Recession
H Social Sciences > Economics > Macroeconomics
Divisions: School of Business > Master of Science in Finance
Depositing User: Dan English
Date Deposited: 15 Feb 2021 13:55
Last Modified: 15 Feb 2021 13:55
URI: http://norma.ncirl.ie/id/eprint/4759

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