Ireland banking troubles- an excellent historical summary:

Euro membership, Inflation, Interest rates - effect on development, bubbles & bust:

“When Ireland joined the Euro zone, they gave up control over the interest rates. But, as inflation rates were low across Europe, the ECB kept interest rates low. But, at the same time, a fast-growing economy like that of Ireland probably needed higher interest rates. But, with out higher rates the economy was sure to overheat (with inflation). Investors (especially Irish BANKS) could borrow money at cheap interest rates in continental Europe and invest at higher (expected) rates of return in Ireland (classic carry trade). With a fixed exchange rate, there was no fear of currency devaluation and so the international borrowing seemed “risk free”. As money seemed easy, it flowed… and created asset (home) bubbles. Then came the housing bubble burst of 2007 and the fiscal deficit crisis of 2010….