REVISITING THE UK AND IRELAND’S TRANSATLANTIC ECONOMIC RELATIONSHIP WITH THE UNITED STATES IN THE 21ST CENTURY Beyond Sentimental Rhetoric Edited by Anne Groutel, Marie-Christine Pauwels and Valérie Peyronel Revisiting the UK and Ireland’s Transatlantic Economic Relationship with the United States in the 21st Century Anne Groutel • Marie-Christine Pauwels • Valérie Peyronel Editors Revisiting the UK and Ireland’s Transatlantic Economic Relationship with the United States in the 21st Century Beyond Sentimental Rhetoric Editors Anne Groutel Paris - Panthéon-Sorbonne University France Valérie Peyronel Sorbonne Nouvelle - Paris University, France Marie-Christine Pauwels Paris Ouest Nanterre la Défense University, France ISBN 978-1-137-58549-3 ISBN 978-1-137-58550-9 DOI 10.1057/978-1-137-58550-9 (eBook) Library of Congress Control Number: 2016955261 © The Editor(s) (if applicable) and The Author(s) 2017 The author(s) has/have asserted their right(s) to be identified as the author(s) of this work in accordance with the Copyright, Designs and Patents Act 1988 This work is subject to copyright All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Macmillan Publishers Ltd London Foreword Ireland’s Coming of Age This book brings together a range of fascinating chapters focusing on the complicated relationships between the UK, the USA, and Ireland These relationships have developed and changed greatly in the aftermath of World War II. With the fall of the Berlin Wall there was a change in both the political and economic environment, altering how the three countries interact Changes in the rest of the world, most notably in Asia, have developed the lens through which the USA looks at the outside world However, even more important than these developments for the inter-relationships between the UK, the USA, and Ireland, has been the development and evolution of the European Union (EU) For Ireland it has transformed the economy, society, and the country’s external relationships In the boom years of the 2000s, many foreign observers came to Ireland in search of the elixir of eternal growth—only to discover it did not exist Since the Great Recession began in 2008, many came instead to observe Ireland’s Icarus-like fall from grace and to try and make sense of the country’s roller coaster economic ride over the past two decades While there is an interesting story to be told of hubris and retribution, there is an even more interesting story of Ireland’s policy failure over the v vi Foreword first half century of independence, and its subsequent discovery, over the past 40 years, of how to really make an economy work, with all the benefits which that can bring to the wider society When Ireland became independent in 1922, it was much poorer than the rest of the United Kingdom Nonetheless, compared with many other European countries, it actually looked like a success But over the period to 1960, especially in the period after World War II as the rest of Europe rebuilt itself, the Irish economy languished in isolation, continuing to fall behind much of the rest of Western Europe.1 The two big mistakes that Ireland made in 1945 were the failure to embrace free trade and European integration, and the failure to invest in education By 1960, as a result of these unwise policy choices, the economy was a failure and much of the young, relatively poorly educated population had to emigrate and find employment elsewhere While the nature of the policy failure was identified in the 1960s, it took decades to make up for the wasted post-war years This economic failure of the independent state was mirrored by a broader failure in Irish society With a cultural life that was inwardlooking, and adversely affected by censorship, there was a continuing outflow of talented artists and writers People left, never to come back, taking their inspiration with them The result was a society that was isolated from the vibrancy of developments elsewhere in Europe EU membership in 1973 represented a dramatic change for all of Irish society Working in the Department of Finance, my first job was to put away all the files on Ireland’s external economic relations and those files were not taken out again In the pre-EU era, external economic relations had involved traveling to London as a mendicant seeking access to the UK market and looking for advice on economic policy Instead, from the beginning of 1973, all the new files covered interaction with the EU, and all the committees that membership entailed EU membership proved a revolutionary experience for the Irish administration, the Irish economy, and the wider society Ireland found its independence through EU membership and, since then, it has had the opportunity to develop itself as an equal within the EU family O’Gráda, C (2002) Is the celtic tiger a paper tiger? Quarterly Economic Commentary (Dublin: ESRI) April Foreword vii The relationship with the UK has also been transformed within the EU. Ireland and the UK have on some occasions found themselves allies, promoting the EU single market, and on other occasions they have been opponents in areas such as the Common Agricultural Policy and wider EU integration Relations with the USA have also undergone a major change In the immediate post-war years, Ireland suffered from the displeasure that the Roosevelt regime had expressed at Ireland’s neutrality during the War Over the course of the 1950s, Ireland did not appear on the US radar, economically or politically However, beginning with the election of President John F. Kennedy in 1960, there was a growth in interest in Ireland from the broad Irish-American community and, in return, an interest from Ireland in developing relations with that community to further Irish interests The most obvious manifestation of the closer relations between Ireland and the USA has been in the economic sphere Beginning in the 1960s, US firms began to invest in Ireland However, once Ireland joined the EU and could provide a gateway to the wider EU market, this flow of investment accelerated Currently, most of the top US firms in pharmaceuticals and information technology services have businesses in Ireland The coincidence of economic interests between Ireland and the USA has, ironically, allowed Ireland to pursue a more independent line in the field of foreign policy In the 1960s the government did not feel able to disagree with US policy in Vietnam However, in the 1980s, Ireland openly opposed US policy in Central America and, more recently, its involvement in Iraq For 200 years, Irish men and women emigrated in large numbers to the USA and the UK. However, since the 1970s, the pattern has changed While many young people still emigrate, the majority of them have proved to be homing pigeons, eventually returning with new skills In addition, since the late 1990s there has been extensive immigration, the majority of the new arrivals coming from other EU states This has transformed Ireland into a more culturally diverse country, with the second most widely spoken language in Ireland today being Polish, not Irish For the future Ireland will continue to develop its close links with the UK and the USA, secure in its membership in the EU. Ireland has learned the importance of developing wider coalitions and alliances within the viii Foreword EU. However, in the immediate future, Ireland, perforce, will take on the role of marriage counselor, trying to bring about reconciliation between unhappy partners, the UK and the EU Trinity College Dublin Dublin, Ireland John Fitzgerald Bibliography O’Gráda, C (2002) Is the celtic tiger a paper tiger? Quarterly Economic Commentary (Dublin: ESRI) April http://www.esri.ie/pubs/QEC2002Spr_ Policy_OGrada.pdf Accessed 20 Oct 2015 Contents Part I The UK’s and Ireland’s Economic Relationship with the United States: A ‘Living Entity’ 1 Introduction Anne Groutel Turning the Telescope Around The Anglo-American ‘Special’ Economic Relationship in the ‘Post-American’ World 23 Martine Azuelos The Irish−US Economic Relations: End of an Era or a Promising Future? Vanessa Boullet 57 US Investment in Northern Ireland: Strategies, Incentives and Perspectives Valérie Peyronel 75 ix x Contents Part II Transatlantic Cross-Influences, Cooperation and Competition The Role of Finance in US–UK Relations Today and Its Global Influence Nicholas Sowels Albion’s Global Reach: British Influences on US and EU Financial Regulation in the 1980s and the Era of the ‘Great Recession’ Kester Keating and Gabriel Suprise British and American Monetary Policies Convergence: Structural Coincidence or Transatlantic Mutual Influence? Nathalie Champroux Part III Perspectives and Challenges The USA and the UK (1970–2010): Ordinary Trading Partners? Laurent Beauguitte and Yann Richard Transatlantic Services Trade and Investment: Dynamics of and Challenges to the ‘Special Relationship’ in the Twenty-First Century Louise Dalingwater 10 Irish-Owned Exporting Companies: Looking East, Looking South but Still Going West Anne Groutel 93 95 121 141 165 167 185 205 Index Brewin Dolphin, 136 Brexit, 36, 88, 228 See also United Kingdom BRIC nations Ireland and, 213, 215–16, 219 UK–US relationship and, 168–70, 181–82 US trade and, 172–76 British American Business, 44, 85 British Council, 46 Brown, Gordon, 25n9, 48, 104, 168 Brussels, 129, 131, 134, 136–37 Bundesbank, 142, 153 See also Germany Bush, George H.W., 103, 153 Bush, George W., 5, 82–3, 103 business services, 18, 190–92, 194 C Calingaert, Michael, 34, 142 Callaghan, James, 43n68 Callelo, Paul, 134 Cameron, David, 5–6, 36, 46, 201, 228 Canada See also Bank of Canada EU and, 65 inflation and, 144, 157 international law firms and, 105 Ireland and, 69, 177 NAFTA and, 29n16 TPP and, 29 UK and, 41, 107, 125 US and, 30, 32–3, 178–79 capital investments, 75, 101 Capital Requirements Directive (CRD), 130–31 Carney, Jay, 37 233 Carney, Mark, 157–58 Carrasco, J., 170 Carter, Jimmy, 43n68 Casey, Jean-Pierre, 135 Celtic Tiger, 62, 64, 72 CEPII, 171n5, 175–76 Champroux, Nathalie, 17, 141–60 Chancellor of the Exchequer, 108, 125, 129, 157 CHELEM database, 171 China barriers to growth, 201–2 convergence of monetary policies and, 151 education and, 193 global economy and, 28 Ireland and, 88, 210, 212–15 trade agreements and, 29 trade partners, 30 UK–US relationship and, 168–69 US and, 6, 25n9, 29–30, 107, 167–68, 176, 179, 200–1 Churchill, Winston, 4, 23, 24n2, 39, 168, 185 Citibank, 107, 127 Citicorp, 127 Clinton, Bill, 8, 80–1, 83, 103–4, 153, 168 Clinton, Hillary, 46n79, 83 Cold War, commercial relations, 168 Commons, John R., 38 Commonwealth nations, 178–79, 200–2 See also Australia; New Zealand comparative advantage, 191–92, 195, 202 234 Index competitive advantage, 35, 65, 67, 72 Confederation of British Industry (CBI), 195 Conservative Party (UK), 36, 100, 114, 123–24, 142 convergence, US–UK economic policies See also United Kingdom; United States conflicts and, 43 cooperation and, 43 culture and, 39, 42–3 global financial crisis and, 143, 146–47 global monetary policy science, 149–51 intergovernmental cooperation, 50 structural evolution leading to, 148–51 TTIP and, 44 corporate tax, 67–70, 87, 228 corporation tax, Ireland, 59, 65, 67, 69–71, 87 See also Ireland COW dataset, 171, 176–77 Cowen, Brian, Credit Suisse, 134 culture cultural differences, 216 cultural essentialism, 41 cultural exchanges, 4, 13, 15, 46n79 cultural gap, 42 current account balance, trade and, 190 cyclical shocks, 49n91, 190 D Dalingwater, Louise, 18, 185–202 data privacy, 64 Davies, Howard, 129n21 Davies, Ryan, 135n40 Department of Enterprise, Trade, and Innovation (Ireland), 208 Department of Foreign Affairs (Ireland), 213 Department of Housing and Urban Development, US (HUD), 99 Department of Trade and Industry (UK), 128–29 deregulation banking sector and, 100–4 economic growth and, 47 global financial crisis and, 96, 108, 148 Greenspan and, 128 London and, 102 Major and, 104 neoliberalism and, 96, 100 Northern Rock and, 108 Reagan and, 43n68, 100 subprime crisis and, 148 Thatcher and, 43n68, 100, 104, 124, 126 Deutsche Bank, 133 diaspora, 76, 81, 211, 215, 217, 219 digital trade, 197 See also e-commerce direct investment See also foreign direct investment bilateral foreign, 15, 26, 49 defined, 57n1 Ireland and, 15, 57–9, 61, 72, 76, 78 mutual foreign, 31 UK and, 32–3, 104 US and, 31–2 Index Dobriansky, Paula, 82 Dobson, Alan P., 10, 13, 26, 29, 43, 155 Dodd, Christopher, 81 Dodd-Frank Act (2010), 109–10, 114, 129, 132, 134, 197 Dunning, John H., 38 E Eastern socialist countries, 174, 178 e-commerce, 65, 197 economic crisis (2008-2009) See global financial crisis Edmonds, Tim, 128n29 education capitalism and, 43n67 exchanges, 45–7 exports, 193, 197 Ireland and, 64, 80n20, 85–7, 208n16, 213 Middle East and, 211 STEM, 87 systems for, 39 UK and, 46 WTO and, 188–89 ego-network, US and, 178–79 “elegant solution”, 127 See also Big Bang elites, 15, 42, 44, 50, 191, 207, 215, 217 emerging markets BRIC nations, economic crisis and, 200 GDP growth and, 202 Ireland and, 207, 212, 215–20 monetary policy and, 152 235 TTIP and, 13, 18 UK and, 17, 35n32, 201 US–UK trade relationship and, 169–70, 200–1 emigration, 7–8, 60 employment See also unemployment BoE and, 144, 147 Bretton Woods and, 11 Fed and, 144–45, 147 GDP growth and, 190, 194 global financial crisis and, 62–3 Ireland and, 70, 72, 75, 77–8, 109, 206 QE and, 48 services and, 190 Thatcher and, 124 turnover and, 72 US–UK trade relationship and, 31–2, 195 Enterprise Ireland, 207, 209, 212, 214, 216–17 See also Ireland Europe Eastern Europe, 40, 174 Eurobonds, 34, 99, 127 Eurodollar markets, 98, 100, 106 Euromarket, 128 European Central Bank (ECB), 150–51, 153n29, 157 European Commission, 44n71, 62, 66 European Common Market, 29 European Economic Area, 169, 180 European Economic Community (EEC), 60, 64, 72 European economic integration, 29 236 Index Europe (cont.) European Exchange Rate Mechanism (ERM), 147, 153 (see also (exchange rate)) Europeanization, 169–70, 174 European Monetary System, 102 European Monetary Union, 142, 155 Eurozone, 112, 122, 216 Southern Europe, 40, 216 Western Europe, 41, 98, 128, 169, 182, 215n61 European Union (EU) See also transatlantic business, Transatlantic Trade and Investment Partnership agreement (TTIP) Brexit and, 36–7 CRD and, 130–31 economic integration and, 29 exports, 215, 218, 228 globalization and, 169, 180 IMF and, 62 international accounting standards and, 105 Ireland and, 62–72, 210 Liikenen Group and, 133 MiFID and, 135 NYLON and, 35 PRIPS and, 130, 135 regulation and, 115, 129–30, 134–36, 197 taxes and, 70–1 TTIP and, 44, 66–7, 199 UK and, 115, 122, 129, 133–37, 200 US and, 58, 167, 169 US–UK trade relationship and, 29, 31, 35, 45, 169, 182, 200–2 exchange rate, 11n35, 100, 102, 144, 149, 152–53 See also Europe, European Exchange Rate Mechanism (ERM) exports See also imports Asia and, 179 CHELEM database and, 171–72 FDI and, 15 GDP and, 148 intra-firm trade and, 33 Ireland and, 12, 15, 59–60, 62–3, 66, 68, 205–20 North Atlantic Free Trade Area and, 199 services exports, 31, 196–97, 200–2 share of world trade by country, 28 taxes and, 60, 69 UK trade partners, 30, 200 US trade partners, 30 US–UK trade and, 18, 30–1, 174–75, 189–93 F Federal Deposit Insurance Corporation (FDIC), 110 Federal Open Market Committee (FOMC), 144, 147, 153n29, 156 Federal Reserve Bank See also Bernanke, Ben; Greenspan, Alan; Volcker, Paul Index AASR and, 142 Bank of England and, 14, 17, 141–42, 144, 156–59 deregulation and, 43n68 dual mandate, 145 Financial Services Act and, 127 global financial crisis and, 156 interest rates, 153n29, 157–58 monetary policies, 144, 146–47, 156–59 power to provide credit, 110 QE and, 48, 49n92 Federal Reserve Reform Act (1977), 144 Ferguson, James, 41 Fianna Fáil (Ireland), 208 Financial Conduct Authority (FCA), 112, 136 financial crisis See global financial crisis financial deregulation See deregulation Financial Securities Act, UK (2012, 2013), 112 Financial Services Act, UK (1986), 126, 128 Financial Services and Markets Act (2000), 129 Financial Services Authority (FSA), 112, 128 Financial Services Committee (US), 114 Financial Stability Institute (FSI), 131 Fine Gael, 59n5, 208 food China and, 212 exports, 210n28 237 Ireland and, 211–14, 217, 219 manufacturing, 60, 211 Russia and, 219 safety standards, 65–6, 211 Ford, David, 84 Ford, Gerald, 43n68 Ford Motor Company, 59 foreign direct investment (FDI) China and, 201 factors affecting, 38 global economic crisis and, 58, 63 Ireland and, 57–72, 206–8, 220 Northern Ireland and, 75, 78, 85–8 service sector and, 198 significance of, 194–96 US–UK relationship and, 26, 31–2, 38, 201–2 foreign-owned businesses, 59, 78, 87, 205n1, 209n20 foreign trade, 27, 29–30, 170, 193 Forward Guidance (FWG), 146, 150–51, 156–57, 159 France, 30, 32–3, 58, 134, 170, 174, 177–78, 191, 195, 197, 200, 207, 215 free-market economics, 47, 96, 103, 117, 123–24 free trade agreements See also North American Free Trade Agreement Bretton Woods, 11, 14, 29 Canada-US, 29n16 Central American Free Trade Agreement, 29n16 FDI and, 65–8 19th century, 97 TTIP, 199 238 Index free trade agreements (cont.) US–EU, 14, 65, 72 US–South Korea, 29 US–UK, 97 Freudenberg, M., 172n9 Friedman, Milton, 100, 149 Fulbright Commission, 46 G G-5, 153, 154n30 G-6, 153 G-7, 142, 154n30, 192 G-8 (Group of 8), 48, 83, 142 G-20 (Group of 20), 48 Gamble, Andrew, 97, 124 Gaulier, G., 172 General Agreement on Tariffs and Trade (GATT), 11n34, 28n12 geography, 39, 43n67, 64, 85, 168–70, 181 Germany, 30–3, 58, 62, 69, 88, 97, 101, 107, 133, 142, 157, 170, 174, 186, 191, 195, 200, 207, 215, 220 gilts (UK government debts), 101, 125, 146 Glass-Steagall Act (1933), 101, 103, 111, 127–28 Gledistch, K.S., 173n11, 176n12 global financial crisis See also Great Recession Anglo-Saxon economic model and, 12, 24n6 banking sector and, 48, 116, 133 convergence of monetary policy following, 146–51 deregulation and, 96, 108, 148 economic strategies before crisis, 144–45 effect on US-Irish relations, 62–4 FDI and, 194–95 Federal Reserve and, 156, 159 financial sector and, 192, 197 Ireland and, 16, 56, 62–4, 71, 209, 219 monetary policy and, 141, 143–44 professional services and, 192 reforms and, 121–22, 129, 132–33, 135 “special service relationship” and, 200 steps taken to address, 48 US-Irish relationship and, 13–14, 62–4 US–UK relationship and, 47–8, 103, 108–14, 200–1 globalization, 14, 37, 42, 47, 49, 113, 148, 168–70, 180, 189, 196 Goldman Sachs, 36, 134 gold standard, 11n35, 97, 100, 102 Goldstein, Morris, 134 Good Friday Agreement, 16, 78, 80–2 See also Northern Ireland Goodhart, Cae, 133n30 Goodison, Nigel, 125–26 government bonds, 99, 146 See also Europe, Eurobonds Government National Mortgage Association (GNMA or Ginnie Mae), 99 Gower, Jim, 125, 127 Index Great Depression, 127, 185 Great Famine, 7, 60 See also Ireland Great Moderation, 152, 154 Great Recession, 14, 49, 62–4, 102, 141 Green, Davis, 129n21 Greenspan, Alan, 103–4, 111, 128, 145 gross domestic product (GDP) barriers to trade and, 196, 199, 202 economic stimulus and, 63 European Community, 61 FDI and, 194 Great Recession and, 102 Ireland, 61, 66, 69 post-WWII, 98 services trade and, 189, 190 trade models and, 173–75, 177–78 UK, 27, 102, 148, 150 US, 27, 63, 98 Groutel, Anne, 3–18, 205–20, 227–29 Gupta, Akhil, 41 H Hale, David, 123n1, 124n2 Hamilton, Adrian, 125n8 Hamilton, Alexander, 96 Harries, Owen, 40 Heath, Edward, 123 high-tech sector, 62, 69–72 See also Information Technologies (IT) sector; software development housing bubble, 205 Howard, Michael, 128 239 I imports See also exports CHELEM database and, 171–72 FDI and, 198 free trade and, 97 GDP and, 148, 190–91 Ireland and, 60, 211 services imports, 18, 31, 189–92, 201 share of world trade by country, 28 trade barriers to, 196 UK trade partners, 30, 200 US trade partners, 30 US–UK trade and, 18, 174 Independent Commission on Banking See Vickers report Inderst, Roman, 136 India, 6, 35, 78, 88, 168–69, 175, 193, 201–2, 213 indigenous firms, 18, 207–11, 213, 215–20, 228 Industrial Development Authority, Ireland (IDA), 60, 63–4, 68 inflation, 157 Information and Communication Technology (ICT), 210n25, 217 Information Technologies (IT) sector, 62, 79, 86 Ingham, Hilary, 124n6, 125n9 intellectual property, 38n43, 71 intensity trade relation (ITR), 172, 174–76 interconnection/interconnectedness, 35–6, 42, 47, 49–50, 108 Intercontinental Exchange Benchmark Administration, 107 240 Index interest rates, 36, 48, 109, 117, 141, 144, 146–47, 150, 153, 156, 158, 193 See also Bank of England; Federal Reserve Bank Internal Ratings Based (IRB) approach, 130–31 International Fund for Ireland, 12, 80–1, 83 See also Ireland International Monetary Fund (IMF), 43n68, 48, 62, 106 International Monetary Market, 100 international monetary system, 97, 142 international political economy (IPE), 25, 37 Invest Northern Ireland, 78–9 See also Northern Ireland Iran, 116 Iraq, 6, 168 Ireland diplomacy efforts, 212–14 economic growth, 205, 210–12 emerging economies and, 215–19 emigration from, 40 enhanced role for Irish-owned firms, 208–10 Enterprise Ireland, 207, 209, 212, 214, 216–17 EU and, 13 European Community and, 15 FDI and, 32, 36, 57–8, 72 global financial crisis and, 16, 56 Great Britain and, 206 imports, 191 International Fund for Ireland, 12–13 Obama and, 7, protectionism and, 12 residuals, 177 tax regime, 68–71 trading partners, 207 UK and, 10 US and, 7, 11–14, 17, 56 free trade agreements, 65–8 global financial crisis’ effect on, 61–4 investment in, 57–62 sustainability of relationship, 64–5 Israel, 64, 178, 186 J Japan, 25n9, 28–30, 32–3, 35, 101, 106–7, 125, 128, 178, 192 See also Bank of Japan Jay Treaty (1794), 194 Jean, S., 172 K Karsenty, G., 189 Keating, Kester, 17, 121–37 Kelly, Declan, 83 Kennedy, Edward (Ted), 80–1 Kennedy, J., 64 Kenny, Enda, 70 Kenya, 177–78, 213 Kerr, Ian M., 121n10–11, 128n19–20 Kerry Group, 210 Kerry, John, 76, 167 Keshk, O., 171 Keynesian consensus, 43, 149, 186 Keynes, John Maynard, 154 Index King, Mervyn, 145, 150, 156–57 Kissinger, Henry, 186 Krugman, Paul, 38 Kydland, Finn, 149 L Lannoo, Karel, 135n39 Latin America, 40, 99, 215n60, 216 Lawson, Nigel, 125–26 Lehman Brothers, 48, 63, 108, 112, 153 Lemass, Seán, 57–8 Liikanen report, 129, 132–34 London See also New York-London financial nexus (NYLON); United Kingdom finance and, 14–16, 26, 47, 49, 114–17 importance to US banking industry, 95–103 international banking and, 104–9 London International Financial Futures and Options Exchange (LIFFE), 102 New York and, 14–16, 34–7, 79, 114 Louvre Accord (1987), 153 Lucas, Robert, 149 Luxembourg, 30, 32–3, 69, 171, 195 Lyons, James, 80, 83 M Maastricht Treaty (1992), 200 Major, John, 5, 104 Malaysia, 29, 201 Markets in Financial Instruments Directive (MiFID), 135 241 Markusen, J.R., 198 Marshall Plan, 12, 59, 98 Marsh, Steve, 10, 13, 26, 155 McAleese, D., 60n10 McCausland, J.D., 10n32, 14n46 McDonald, H., 12n41 McFadden Act (1927), 102 McGinty, Roger, 81n23 McGuinness, Martin, 83n29, 84 McKinney, Joe, 10n32, 29, 43 McKinsey, 105 Mead, W.R., 40 Merrill Lynch, 35n32, 193 Mexico, 29–30, 69, 116, 177, 179 Meyer, L.H., 151n23, 152n25, 154n30, 155 Middle East, 35, 64, 211, 214, 216 Mishkin, Frederick, 150 Mok, D., 170 monetarist policies, 43n68, 142, 159 monetary cooperation, 152 monetary policies Bank of England and, 126 Bretton Woods, 11n35 monetary stability, 149, 154 Thatcher government and, 102 US–UK convergence with US policies, 143, 148–51 globalization and, 149–51 historical overview, 139 overview, 141–43 policy convergence after 2008 crisis, 146–47 policy cooperation and, coordination, 152–58 specific strategies before 2008 crisis, 144–45 242 Index Monetary Policy Committee (MPC), 144–45, 147, 153n29, 157 multilateral system, 11, 142, 152, 154 Multilateral Trading Facilities, 135 Multilateral Trading System, (MTS), 28n12 multipolar world, 24 N Nash equilibrium, 154, 159 national sovereignty, 155, 158 Netherlands, 30–3, 58, 64, 69, 105, 171, 177, 195, 207, 215 New Transatlantic Agenda, 65 New York-London financial nexus (NYLON), 34–5, 50 See also London New York Stock Exchange, 34–5, 79, 85 New Zealand, 29, 144, 157, 178 Nigeria, 77–9, 201 1998 Agreement, 178, 181 non-governmental organizations (NGOs), 25, 37 non-tariff barriers, 196, 201 See also barriers to trade; tariffs North American Free Trade Agreement (NAFTA), 35, 45, 179 North Atlantic Free Trade Area, 199 North, Douglass, 38 Northern Ireland See also Good Friday Agreement FDI and, 16, 76–9 peace process, 16, 76–8, 80–4 Sinn Féin, 84 US and Bush, 82 Clinton, 8, 80–1, 83 investment in, 76–9 Obama and, 82–3 overview, 75–6 perspectives and challenges for investment, 85–8 Northern Rock, 48, 108 Nye, Joseph S., 24n3, 37n39, 45–6 NYLON (New York-London financial nexus), 34–35, 50 O Obama, Barack See also United States Asia and, 6, 24, 168 Brexit and, 36 Brown and, 25n9 emerging economies and, EU and, 168 Ireland and, 7, Northern Ireland and, 82–3 UK and, 6–7, 25n9, 36, 46–8 Volcker Rule and, 110 oil crisis, 124 Organisation for Economic Co-operation and Development (OECD), 49n91, 59n4, 70–1, 187 Organisation of Petroleum Exporting Countries (OPEC), 99 Osborne, George, 133, 157 P Packaged Retail Investment Products (PRIPS), 130 Pandit, K., 170n4 Parkinson-Goodison agreement, 125–26 Index Partnerships for International Research and Education (PIRE), 47 See also education peace process, Northern Ireland, 16, 76–7, 80–1, 83–4 See also 1998 Agreement; Northern Ireland Peyronel, Valérie, 15–16, 75–88 pharmaceutical sector, 60, 62, 68, 212, 218n81 Plender, John, 124, 126–27 Pollins, B., 171n6 Poon, J., 170n4 pound sterling, 143–44, 152 Prescott, Edward, 149 “primary traders”, 101 product standardization, 65 professional services industry, 116, 188, 192, 196 profit transfers, 113 prudential oversight/regulation, 122, 128–37 Prudential Regulation Authority (PRA), 112 Q Quaglia, Lucia, 131 quantitative easing (QE) programs, 48, 49n92, 146, 151, 158–59 R Raymond, Ray, 14 Reagan, Ronald, 11, 43n68, 100, 103, 128 243 regional integration, 27–33, 37, 49, 169, 179–80 regionalization, 169, 178 Regional Trade Agreements (RTAs), 28n12 regulatory regimes, 45, 50, 121–23, 128, 136 Republic of Ireland See Ireland research and development, 64, 71, 86 residuals, 173, 176–78 Retail Distribution Review, UK (RDR), 129, 135–36 Reynolds, D., 168 Rhodes Trust, 46 Richard, Yann, 17, 160–82 Riksbank, 153n29, 157 ringfencing rules, 129, 133 Rodriguez-Pose, A., 170n4 Roosevelt, Franklin D., 4, 168 Russia, 168, 174, 176, 213, 218–19 Rutherford, Thomas, 198n20 S Sarbanes-Oxley Act (2002), 115 Saudi Arabia, 25n9, 30, 201, 211, 213–14 Science, Technology, Engineering, and Mathematics (STEM), 87 See also education Securities and Exchange Commission, US (SEC), 43n68, 70, 128 Securities and Investment Board (SIB), 128–29 self-regulatory organizations (SROs), 125, 129 244 Index services trade, 18, 31, 66, 148, 165, 186–202 S.G. Warburg bank, 99 Shad, John, 128 shipbuilding, 76 Silicon Valley, 217 Singapore, 29, 178, 201 Singer, David, 135 Single Act (1986), 200 Single Market, 62, 64 Siroën, J.M., 169n3 “soft” power, 46 software development, 62, 79, 86, 212 See also high-tech sector South Africa, 35, 201, 212, 214 See also Africa South Korea, 29–30, 178, 186, 194, 213 Sowels, Nicholas, 16, 92–117 Spain, 30, 32–3, 170, 174 stagflation, 123, 149 See also inflation; stagnation stagnation, 123 statutory incomes policy, 123 See also Heath, Edward Stormont Agreement (2014), 87 subprime crisis, 47–8, 108, 113, 148 Suez crisis, Summers, Lawrence, 104 Suprise, Gabriel, 17, 121–37 Sweden, 88, 157, 178 Switzerland, 32–3, 69, 134, 153n29, 192 T Taiwan, 64, 178 Tanzania, 177 tariffs, 59, 65, 67, 189, 199 See also barriers to trade; non-tariff barriers Tarr, David, 198 Tarullo, Daniel K., 130 tax havens, 65, 69–70, 104, 106 Taylor, C., 211n36 Taylor, John B., 150 telecommunications sector, 187, 198, 202, 217n69 textiles, 60, 76 Thatcher, Margaret deregulation and, 43n68, 104, 126 Reagan and, 11, 100 regulatory reform and, 123–24, 137 US–UK relationship and, 11, 43n68, 142, 159 valuation of pound and, 102 Thompson, Joseph E., 8n26 Thompson, Steve, 124n6, 125n9 Thrift, Nigel J., 39 Tobelem, Zanin, 169n2 “too big to fail”, 110, 134 trade See also North American Free Trade Agreement (NAFTA); transatlantic business; Trans-Pacific Partnership (TPP) trade agreements, 14, 28–9, 45, 65–8, 72, 197, 199 trade balance, 190 trade deficits, 31, 190, 201 trade missions, 78, 213–14, 216, 218n81 trading partners, 31, 65 transactions-based finance, 101 transatlantic business Index barriers to trade and, 199 British American Business organization, 85n36 business culture, 45 emerging markets and, 13, 18 EU and, 44, 66–7, 199 free trade, 199 interconnection of financial markets, 47, 50 investment, 35 services trade, 18 Transatlantic Economic Council, 65 Transatlantic Economic Partnership (1998), 65 Transatlantic Trade and Investment Partnership agreement (TTIP), 13, 16, 18, 44, 65–8, 71–2, 199 transnational corporations, 35, 37 Trans-Pacific Partnership (TPP), 29–30 See also Asia Trichet, Jean-Claude, 143n6, 150–51, 153n29 U Ünal-Kesenci, D., 172n9 Underhill, R.D., 131n25 unemployment See also employment FWG and, 147 global financial crisis and, 48, 62–3 Ireland and, 75, 84, 206 QE and, 48 Thatcher and, 124 UK and, 124, 147, 149, 157 US and, 63, 149 245 United Kingdom (UK), US and See also Anglo-Saxon; Blair, Tony; Brexit; Cameron, David; Thatcher, Margaret accounting practices, 105 Asia and, 35n32 banking, 98–102, 105, 107–11, 115–16 barriers to trade, 103 Bretton Woods and, 11 BRIC nations and, 168–70, 181–82 Canada and, 41, 107, 125 education and, 46 emerging economies and, 216 EU and, 29, 115, 122, 129, 133–37, 200, 228 financial innovation, 17, 123–29 gilts, 101, 125, 146 global financial crisis and, 108–9 Ireland and, 10, 12–14, 58–62, 68, 210, 228–29 military interests, monetary policies convergence with US policies, 143, 148–51 globalization and, 149–51 historical overview, 139 overview, 141–43 policy convergence after 2008 crisis, 146–47 policy cooperation and, coordination, 152–58 specific strategies before 2008 crisis, 144–45 Northern Ireland and, 16, 75–7, 83–8 Obama and, 6–7, 25n9, 36, 46–8 246 Index United Kingdom (UK) (cont.) offshore islands, 32–3 patent box, 71 preferential trade relations, 178 regulation and, 104, 111, 129–37 Retail Distribution Review (RDR), 129, 135–36 UK Treasury, 142, 144–45, 159 unemployment and, 124, 147, 149, 157 US and, cultural similarities, 39–47 asymmetry between economies, 15, 26–7 bilateral trade, 15m 27–33 centrality of finance, 47–9 entertainment industry, 199 EU involvement in relationship, 29, 31, 35, 45, 169, 182, 200–2 FDI, 60–2, 71, 195 global finance and, 34–7, 103–7, 114–17 global financial crisis and, 108–14 historical relationship, 96–103 institutional foundations of special economic relationship, 37–49 “special relationship” status, 4–6, 23–5, 167–68, 186 tariffs, 59 trade and, 97 United States (US) See also Federal Reserve Bank Anglo-Saxon culture and, 42–8 Asia and, 6, 17, 24, 29, 97, 168 BRIC nations and, 168–70, 181–82 Canada and, 30, 32–3, 178–79 China and, 6, 25n9, 29–30, 107, 167–68, 176, 179, 200–1 convergence with UK economic policies conflicts and, 43 cooperation and, 43 culture and, 39, 42–3 global financial crisis and, 143, 146–47 global monetary policy science, 149–51 intergovernmental cooperation, 50 structural evolution leading to, 148–51 TTIP and, 44 direct investment and, 31–2 EU and, 29, 31, 35, 45, 58, 167, 169, 182, 200–2 Ireland and, 7, 11–14, 17, 56 free trade agreements, 65–8 global financial crisis’ effect on, 61–4 investment in, 57–62 sustainability of relationship, 64–5 Northern Ireland and Bush, 82 Clinton, 8, 80–1, 83 investment in, 76–9 Obama and, 82–3 overview, 75–6 perspectives and challenges for investment, 85–8 Index “special relationship” with UK, 4–6, 23–5, 167–68, 186 Thatcher and, 11, 43n68, 142, 159 unemployment and, 63, 149 V Vargo, Trina, 80 Veblen, Thornstein, 38 Venezuela, 179 Veron, Nicolas, 132n28, 134n37 Vickers Commission, 111 Vickers report, 129, 132–34 Volcker, Paul, 43n68, 142, 159 Volcker Rule, 103, 110–11, 115, 132 W Wall Street, 36, 105, 193 Wall Street Journal, 45 Wall Street Reform and Consumer Protection Act See DoddFrank Act Ward, M.D., 173n11, 176n12 Warren, K., 137n3 247 Wellman, B., 170n4 Whitaker, T.K., 57–9 White, Harry Dexter, 154 Whitehat, 79 White, P., 60n6 World Trade Organization (WTO), 188, 198–99 See also trade World War I, 98, 101 World War II, 4, 7, 11, 26, 97–8, 104, 149, 154, 167, 186, 189, 206 Y Y/Zen, 112 Z Zacharia, F., 24n3 Zambia, 178 Zambon, A., 44n73 Zanin, C. Tobelem, 169n2 Zero Lower Bound (ZLB), 147n11 Zhang, X., 131n23 Zimmermann, Hubert, 135n38 ... Part I The UK? ??s and Ireland’s Economic Relationship with the United States: A ‘Living Entity’ Introduction Anne Groutel The ties that bind the United Kingdom and the United States are deep and long-standing.. .Revisiting the UK and Ireland’s Transatlantic Economic Relationship with the United States in the 21st Century Anne Groutel • Marie-Christine Pauwels • Valérie Peyronel Editors Revisiting the. .. (eds.), Revisiting the UK and Ireland’s Transatlantic Economic Relationship with the United States in the 21st Century, DOI 10.1057/978-1-137-58550-9_1 A Groutel et al facilitates all kinds of