Thus there was not only an unrealistic expectation that the Irish economy would grow beyond the sustainable level of output – close to the production frontier and at full employment – which it had achieved in the Celtic Tiger period based on sustainable improvements in competitiveness and efficiency.
In addition, the sharp fall in nominal and real interest rates on euro entry led many investors to exaggerate the degree to which a higher capitalization rate would apply to long-lived assets such as property. What new areas come to the fore now as topics for study?