90-2000"s, ireland was heralded as one of the ue"s greats success story. For more than 10 years, their annual economic growth was about 6. 8% and unemployment fell from 16. 9% to 4. 3%. But the economic prosperity was leaning on a housing bubble, which burst with the economic crisis of 2008. To save their banks, the government had to increase its deficit from 10% of gdp to 32%. However, ireland might not be able to pay and found itself in default of payment which would have consequences far beyond its borders. The international monetary system refers to the institutional arrangements that governs exchange rates. System that collapsed in 1973: mechanics of the gold standard, the gold standard. Origin in the use of gold coins as a medium of exchange, unit of account, and store of value. However, as the volume of international trade expanded (industrial revolution), a more convenient type of financing was needed.