Deating the Celtic Tiger 20 15 10 - 010 annual change in consumer prices 0/0 annual growth in gross domestic product 0/0 unemployment rate 10 Source: Central Statistics Office. Ireland. www.cso.ie . The chart above displays economic indicators for Ireland between 1990 and 2011. The Irish economy was one of fastest growing economies in Europe during the 19905 and became known as the Celtic Tiger. However. boom turned to bust following the global nancial crash and recession in 2008. As a result. both private sector and public sector debt increased sharply and the government had to seek financial assistance worth $113 billion from the European Union and International Monetary Fund [IMF] to help it reduce its debt and to support the fragile banking system in the country. The Irish banks had loaned heavily against land and prOperty developments that had since fallen significantly 1 in value due to the slump in demand. Many of their loans were in default as rising unemployment had meant many people could not continue their loan repayments. 1 Explain what each of the indicators in the chart measures 2 What trends can be identified in inflation, unemployment and output from the chart? 3 What evidence is there that there was deflation in the Irish economy towards the end of the period shown in the chart? 4 What evidence is there from the chart that deflation, unemployment and falling economic activity are closely related? Explain why