摘要：The contribution of social partnership to Ireland¡¯s economic boom remains the subject of
controversy. This paper analyses at a theoretical level how a multi-period deal on wages and
taxation of the type struck in the late 1980s could enhance competitiveness and facilitate an
economy in escaping from fiscal crisis. Such a deal would not be possible in a spot labour market.
The high unemployment rates of the late 1980s suggest that the Irish labour market of the time
cannot be characterised as a spot labour market, however, and such a deal could be struck under
these circumstances. Short-term tax reductions would have worsened the short-term budgetary
position and hence would have been politically unacceptable. An agreement entailing a
commitment by government to future tax reductions in exchange for current wage moderation on
the part of organised labour imparts a supply-side stimulus to the economy and improves the
immediate fiscal position. The concluding comments provide a gloomy assessment of whether
partnership could play an equivalent role in the current recessionary environment.
