Professor Alan Ahearne:

It was particularly disappointing in the case of the IMF. It is an international organisation that had seen these booms and busts all over the world in advanced countries and developing countries many times. Part of what happened is that when the EMU was formed the view was that now there is a currency union in Europe, exactly the same as in the United States and therefore we will think about it the same way. For example, Ireland had a big current account deficit but in 2006 and 2007 it was borrowing huge sums of money from other countries, through the banks.