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Floating Rates Versus Fixed Rates
Reem Heakal

Did you know that the foreign exchange market (also referred to as FX or forex) is the largest market in the planet? In fact, over $one trillion is traded in the currency markets every day. This article is definitely not a primer for currency trading, but it will help you understand exchange rates and why some fluctuate whereas others do not.

What Is an Exchange Rate?
An exchange rate is the rate at that one currency can be exchanged for an additional. In other words, it is the price of another country's currency compared to that of your own. If you're traveling to a different country, you would like to "obtain" the local currency. Simply like the price of any asset, the exchange rate is the worth at that you'll be able to obtain that currency. If you're traveling to Egypt, as an example, and therefore the exchange rate for USD 1.00 is EGP 5.fifty, this implies that for each U.S. dollar, you can buy five and a [*fr1] Egyptian pounds. Theoretically, identical assets should sell at the identical worth in several countries, as a result of the exchange rate must maintain the inherent price of 1 currency against the opposite.

Mounted
There are 2 ways in which the value of a currency can be determined against another. A mounted, or pegged, rate could be a rate the govt (central bank) sets and maintains because the official exchange rate. A set worth will be determined against a major world currency (usually the U.S. dollar, but additionally other major currencies like the euro, the yen, or a basket of currencies). In order to maintain the local exchange rate, the central bank buys and sells its own currency on the foreign exchange market in return for the currency to which it is pegged.

If, for instance, it is determined that the value of a single unit of local currency is equal to USD three.0zero, the central bank can have to make sure that it can offer the market with those bucks. In order to keep up the rate, the central bank should keep a high level of foreign reserves. This could be a reserved quantity of foreign currency held by the central bank that it can use to unleash (or absorb) additional funds into (or out of) the market. This ensures an appropriate money supply, applicable fluctuations within the market (inflation/deflation), and ultimately, the exchange rate. The central bank can additionally regulate the official exchange rate when necessary.

Floating
Unlike the fastened rate, a floating exchange rate is set by the non-public market through provide and demand. A floating rate is typically termed "self-correcting", as any differences in provide and demand will automatically be corrected in the market. Take a look at this simplified model: if demand for a currency is low, its worth will decrease, thus creating imported product a lot of expensive and therefore stimulating demand for local goods and services. This in turn can generate additional jobs, and hence an auto-correction would occur in the market. A floating exchange rate is constantly changing.

In reality, no currency is wholly fastened or floating. In a fixed regime, market pressures will conjointly influence changes within the exchange rate. Typically, when a local currency does mirror its true worth against its pegged currency, a "black market" which is more reflective of actual offer and demand could develop. A central bank will often then be forced to revalue or devalue the official rate so that the speed is per the unofficial one, thereby halting the activity of the black market.

In a very floating regime, the central bank could additionally intervene when it is necessary to ensure stability and to avoid inflation; but, it is less usually that the central bank of a floating regime will interfere.

The planet Once Pegged
Between 1870 and 1914, there was a global mounted exchange rate. Currencies were linked to gold, which means that the price of a native currency was fastened at a group exchange rate to gold ounces. This was known as the gold customary. This allowed for unrestricted capital mobility plus world stability in currencies and trade; but, with the start of World War I, the gold standard was abandoned.

At the tip of World War II, the conference at Bretton Woods, in a shot to get global economic stability and increased volumes of world trade, established the essential rules and regulations governing international exchange. As such, a world monetary system, embodied within the International Monetary Fund (IMF), was established to push foreign trade and to take care of the monetary stability of nations and therefore that of the world economy

It had been agreed that currencies would once again be mounted, or pegged, but now to the U.S. dollar, which in flip was pegged to gold at USD thirty five/ounce. What this meant was that the price of a currency was directly linked with the worth of the U.S. greenback. So if you needed to shop for Japanese yen, the value of the yen would be expressed in U.S. bucks, whose value in turn was firm within the value of gold. If a country required to readjust the value of its currency, it may approach the IMF to regulate the pegged worth of its currency. The peg was maintained till 1971, when the U.S. dollar could now not hold the price of the pegged rate of USD thirty five/ounce of gold.

From then on, major governments adopted a floating system, and all makes an attempt to move back to a world peg were eventually abandoned in 1985. Since then, no major economies have gone back to a peg, and the use of gold as a peg has been utterly abandoned.

Why Peg?
The reasons to peg a currency are linked to stability. Especially in nowadays's developing nations, a country might decide to peg its currency to create a stable atmosphere for foreign investment. With a peg the investor can invariably know what his/her investment worth is, and therefore can not have to worry regarding daily fluctuations. A pegged currency will also facilitate to lower inflation rates and generate demand, which results from bigger confidence in the soundness of the currency.

Fastened regimes, but, can usually cause severe money crises since a peg is troublesome to maintain in the future. This was seen in the Mexican (1995), Asian and Russian (1997) money crises: an try to maintain a high worth of the native currency to the peg resulted in the currencies eventually turning into overvalued. This meant that the governments might no longer meet the strain to convert the local currency into the foreign currency at the pegged rate. With speculation and panic, investors scrambled to urge out their money and convert it into foreign currency before the local currency was devalued against the peg; foreign reserve provides eventually became depleted. In Mexico's case, the government was forced to devalue the peso by thirty%. In Thailand, the govt eventually had to permit the currency to float, and by the top of 1997, the bhat had lost its value by fifty% because the market's demand and supply readjusted the price of the local currency.

Countries with pegs are usually related to having unsophisticated capital markets and weak regulating institutions. The peg is thus there to assist create stability in such an setting. It takes a stronger system in addition to a mature market to maintain a float. When a rustic is forced to devalue its currency, it's also needed to proceed with some type of economic reform, like implementing larger transparency, in an effort to strengthen its money institutions.

Some governments could select to own a "floating," or "crawling" peg, whereby the govt reassesses the price of the peg periodically and then changes the peg rate accordingly. Usually the amendment is devaluation, however one that is controlled thus that market panic is avoided. This methodology is typically used in the transition from a peg to a floating regime, and it permits the government to "save face" by not being forced to devalue in an uncontrollable crisis.

Although the peg has worked in creating international trade and monetary stability, it had been used solely at a time when all the main economies were a half of it. And while a floating regime is not while not its flaws, it's proven to be a additional efficient means that of determining the long term worth of a currency and making equilibrium in the international market.


Article Courtesy:
http://finance.yahoo.
com/education/
currencies/article/
106076/Basic_
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Forex news and articles about spot Gold prices and oil

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by admin
21 May 2012 at 12:33pm
On the Forex markets this morning the Euro around was struggling to regain a foothold beyond the $1.27 area against the Dollar. Staying virtually unchanged from its level on Friday, the dollar at 1.2692 euro (+ 0,08%). A low of 1.2642 dollars was hit this morning, against a peak at 1.2708. No significant movements to report against the ye Read more ...
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1 May 2012 at 4:41am
Yesterday the euro was down slightly compared to the U.S. dollar, 1.321 to 1.325 dollars compared to last Friday, particularly affected by the disturbing news growing on Spain. The Spanish economy has again contracted by 0.3% in real terms in the first quarter 2012 compared to the last of 2011, according to the National Statistics Institu Read more ...
Euro Stability Still A Concern On Forex Markets
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24 Apr 2012 at 8:13am
Parity between the euro / dollar is now almost perfectly balanced on the currency market: at around 13:00 hours, the euro was trading at 1.3156 (- 0.01%). Slightly increased towards the yen to 106.9. Nothing to report in the forex market on the state of the euro / Swiss franc, which is stable at 1.2021. ‘We expect fu Read more ...
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18 Apr 2012 at 7:53am
The single currency was losing again today, dropping below $1.31 (EUR/USD) on Wednesday afternoon, amid persistent doubts about the sovereign status of Europe. At this time, the euro yield is 0.42% against the greenback at 1.3073 dollars per euro. The IMF reviewed yesterday, downgrading its growth forecast for Spain in 2012, which shows a Read more ...
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14 Mar 2012 at 6:40am
The single European currency remained without a major trend against the U.S. dollar in the wake of a highly anticipated meeting of the Monetary Policy Committee of the Fed, whose tone lately has been quite positive for the Dollar. The Euro dropped yesterday afternoon from 0.04% to 0 Read more ...
Bernanke comments causes sell off
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1 Mar 2012 at 4:55am
Market sentiment received a bit of a boost yesterday when the results of the ECB?s long-awaited second long-term liquidity operation (LTRO) showed strong demand for the cash from European banks. The ECB lent 800 banks ?529.5 billion, somewhat above the ?450 billion that the market had been anticipating and the ?489 billion lent to 523 fi Read more ...
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28 Feb 2012 at 8:36am
Today the euro remains firm versus the dollar and sterling, trading in relatively tight ranges despite the announcement from ratings agency Standard & Poor?s that it is cutting Greece?s long term credit trading to selective default. Such a move was already expected and indeed factored in, though yesterday?s comments from EU Commission Read more ...
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22 Feb 2012 at 9:34am
Having retreated from near two-week highs as optimism over the long-awaited Greek bailout deal faded to be replaced by underlying concerns over growth and implementation risks, the euro has traded in a relatively tight range versus the dollar over the past 24 hours. Parliaments in three countries (Germany, the Netherlands and Finland) must now a Read more ...
Euro upside following Greek Deal
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21 Feb 2012 at 9:20am
The euro gained some ground in early morning trade briefly breaking through key resistance after eurozone finance ministers finally sealed the details of a second ?130 billion bailout package for Greece. There was also agreement on the details of Greek?s deal with private sector investors, who are now expected to take a haircut in excess of Read more ...
Euro sold as Greek Deal lingers
by Tom
16 Feb 2012 at 4:35am
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Ireland

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Ireland (pronunciation /alnd/ or /alnd/; Irish: ire; Ulster Scots: Airlann) is the third largest island in Europe, [1] and the twentieth-largest island in the world.[2] It lies to the north-west of continental Europe and is surrounded by hundreds of islands and islets. To the east of Ireland, separated by the Irish Sea, is the island of Great Britain. Politically, the state Ireland (described as the Republic of Ireland in cases of ambiguity) covers five-sixths of the island, with Northern Ireland, part of the United Kingdom, covering the remainder in the north-east.

The population of the island is slightly over 6 million (2007), with 4.4 million in the Republic of Ireland[3] (1.7 million in Greater Dublin[4]) and an estimated 1.75 million in Northern Ireland[5] (800, 000 in Greater Belfast[6]). This is a significant increase from a modern historical low in the 1960s, but still much lower than the peak population of over 8 million in the early 19th century, prior to the Great Hunger (1840s famine).

The name Ireland derives from the name riu (in modern Irish, ire) with the addition of the Germanic word land. Most other western European names for Ireland derive from the same source, such as French Irlande, Spanish, Italian, Romanian and Portuguese Irlanda, German Irland and Dutch Ierland.

Contents

[hide]

Political geography

Map of Ireland showing the Republic of Ireland and Northern Ireland Map of Ireland showing the Republic of Ireland and Northern Ireland

The island of Ireland has two distinct jurisdictions:

For the political history of the island, see History of Ireland.

Province Population Area (km) Largest city
Flag of Connacht Connacht 503, 083 17, 713 Galway
Flag of Leinster Leinster 2, 292, 939 19, 774 Dublin
Flag of Munster Munster 1, 172, 170 24, 608 Cork
Flag of Ulster Ulster 1, 993, 918[8] 24, 481 Belfast

Traditionally, Ireland is subdivided into four provinces: Connacht, Leinster, Munster and Ulster; and, in a system developed between the 13th and 17th centuries, 32 counties. Twenty-six of the counties are in the Republic of Ireland, and the remaining six (all in Ulster) are in Northern Ireland. Notably, based on boundaries established in the Early Modern period, Ulster and Northern Ireland are neither synonymous nor co-extensive, as three counties of Ulster (Cavan, Donegal and Monaghan) are part of the Republic. Nonetheless, 'Ulster' is often used colloquially as a synonym for Northern Ireland. Counties Dublin, Cork, Limerick, Galway, Waterford and Tipperary have been broken up into smaller administrative areas, but are still considered by Ordnance Survey Ireland to be official counties. The counties in Northern Ireland are no longer used for local government, although their traditional boundaries are still used in sports and in some other cultural and ceremonial areas.

All-island institutions

Despite the constitutional division of Ireland, the island does operate as a single entity in a number of areas. With a few notable exceptions, the island operates as a single unit in all major religious denominations and in many economic fields despite using two different currencies. There are also significant all-island dimensions to sports such as hurling, gaelic football, rugby, golf, cricket and hockey.

The notable exception to this is soccer (where the previously all-island Irish Football Association following partition retained control of soccer only in Northern Ireland, with a separate Football Association of Ireland being formed for the remainder of the island) although an all-Ireland club cup competition, the Setanta Cup, was created in 2005. The creation of an all-island Association football league and a single international team (which is the case for rugby union) has been publicly touted by various prominent figures on the island in recent years, such as Irish government minister Dermot Ahern.[9] More recently, FAI chief executive John Delaney believes there will be an all-Ireland league, but not before 2012, as a contract involving the Eircom League and the FAI runs to 2011.[10] There is currently at least one player from Northern Ireland regularly appearing in the Republic of Ireland's squad, a practice that the latter's governing institution and the Irish government claim is permitted by the Belfast Agreement - although in reality there was apparently nothing to prevent the FAI from selecting players from Northern Ireland before the Agreement, since the Republic of Ireland's citizenship laws already extended north of the border. Nonetheless, Northern Ireland's governing body, the IFA, has raised the matter with the world governing body, FIFA, which appears to have ruled in favour of the Republic (although the matter remains unclear and therefore unresolved).

All major religious bodies are organised on an all-Ireland basis, such as the Roman Catholic Church, the Methodist Church in Ireland, the Church of Ireland/Anglican Church and the Presbyterian Church in Ireland. Some trade unions are also organised on an all-island basis and associated with the Irish Congress of Trades Unions (ICTU) in Dublin, while others in Northern Ireland are affiliated with the Trades Union Congress (TUC) in the United Kingdom, and some affiliate to both - although such unions may organise in both parts of the island as well as in Great Britain. The Union of Students in Ireland (USI) organises jointly in Northern Ireland with the National Union of Students of the United Kingdom (NUS), under the name NUS-USI.

Strand 2 of the Belfast Agreement provides for all-Ireland co-operation in various guises. For example, a North-South Ministerial Council was established as a forum in which ministers from the Irish government and the Northern Ireland Executive can discuss matters of mutual concern and formulate all-Ireland policies in twelve "areas of co-operation", such as agriculture, the environment and transport. Six of these policy areas have been provided with implementation bodies, an example of which is the Food Safety Promotion Board. Tourism marketing is also managed on an all-Ireland basis, by Tourism Ireland.

Two political parties, Sinn Fin and the Irish Green Party, contest elections and hold legislative seats in both jurisdictions. The largest party in the Republic of Ireland, Fianna Fil, has recently registered with the Electoral Commission in Northern Ireland, and is considering extending its organisation into Northern Ireland, perhaps via a merger with another political party, the Social Democratic and Labour Party (SDLP).[11]

A significant number of newspapers on the island are circulated in both jurisdictions, (for eample, the Irish Times, The Irish Independent, The Sunday Business Post, The Irish Star and L Nua) and report news on an all-Ireland basis. Others include Irish editions of tabloids such as : Ireland-based The Sunday World and the Irish editions of UK-based The News of The World. The Irish Times includes news concerning Northern Ireland in its "Home" section, despite the fact that it is based in the Republic. Notable exceptions to this include, The Belfast Telegraph and Sunday Life (although these titles are owned by Ireland-based Independent News and Media, publisher of The Irish Independent.) Other Irish Newspaper publishers like Independent News and Media and Thomas Crosbie Holdings publish local titles for townlands in both parts of Ireland. Furthermore, most of the television stations based on the island broadcast across the whole island, such as RT, TG4 and UTV (although signals may be relatively weaker in more remote areas).

An increasingly large amount of commercial activity operates on an all-Ireland basis, [12] a development that is in part facilitated by the two jurisdictions' shared membership of the European Union. There have been calls for the creation of an "all-island economy" from members of the business community and policy-makers on both sides of the border, so as to benefit from economies of scale and boost competitiveness in both jurisdictions.[13] This is a stated aim of the Irish government and nationalist political parties in the Northern Ireland Assembly.[14] One commercial area in which the island already operates largely as a single entity is the electricity market.[15] and there are plans for the creation of an all-island gas market.[16]

17 March is celebrated throughout the island of Ireland as St. Patrick's Day.

Physical geography

True colour image of Ireland,  captured by a NASA satellite on 4 January 2003,  with the Atlantic Ocean to the west and the Irish Sea to the east True colour image of Ireland, captured by a NASA satellite on 4 January 2003, with the Atlantic Ocean to the west and the Irish Sea to the east Physical features of Ireland. See also this larger version. Physical features of Ireland. See also this larger version. Main article: Geography of Ireland

A ring of coastal mountains surrounds low central plains. The highest peak is Carrauntoohil (Irish: Corrn Tuathail) in County Kerry, which is 1, 038 m (3, 406 ft).[17] The River Shannon, at 386 km (240 miles) is the longest river in Ireland.[18] The island's lush vegetation, a product of its mild climate and frequent but soft rainfall, earns it the sobriquet "Emerald Isle". The island's area is 84, 412 km[19] (32, 591 square miles).

Ireland's least arable land lies in the south-western and western counties. These areas are largely mountainous and rocky, with dramatic green vistas, hence the attributive name "the Emerald Isle".

Climate

Overall, Ireland has a mild, but changeable, Oceanic climate with few extremes. The warmest recorded air temperature was 33.3 C (91.94 F) at Kilkenny Castle, County Kilkenny on 26 June 1887, where as the lowest recorded temperature was '19.1 C ('2.38 F) at Markree Castle, County Sligo on 16 January 1881.[20]

Other statistics show that the greatest recorded annual rainfall was 3, 964.9 mm (156.1 in) in the Ballaghbeena Gap in 1960. The driest year on record was 1887, with only 356.6 mm (14.0 in) of rain recorded at Glasnevin, while the longest period of absolute drought was in Limerick where there was no recorded rainfall over 38 days during April and May of 1938.[21]

The climate is typically insular, and as a result of the moderating moist winds which ordinarily prevail from the South-Western Atlantic, it is temperate, avoiding the extremes in temperature of many other areas in the world at similar latitudes.

Precipitation falls throughout the year, but is light overall, particularly in the east. The west, however, tends to be wetter on average and prone to the full force of Atlantic storms, more especially in the late autumn and winter months, which occasionally bring destructive winds and high rainfall totals to these areas, as well as snow and hail. The regions of North Galway and East Mayo have the highest incidents of recorded lightning annually (5 to 10 days per year).[22] Munster in the south records the least snow with Ulster in the north more prone to snow. Some areas along the south and southwest coasts have not had any lying snow since February 1991.

Inland areas are warmer in summer, and colder in winter - there are usually around 40 days of below freezing temperatures (0 C/32 F) at inland weather stations, but only 10 days at coastal stations. Ireland is sometimes affected by heat waves, most recently 1995, 2003, 2006.

Geology

Irish countryside Irish countryside

Geologically the island consists of a number of provinces - in the far west around Galway and Donegal is a medium to high grade metamorphic and igneous complex of Caledonide (Scottish Highland) affinity. Across southeast Ulster and extending southwest to Longford and south to Navan is a province of Ordovician and Silurian rocks with more affinities with the Southern Uplands province of Scotland. Further south, there is an area along the Wexford coast of granite intrusives into more Ordovician and Silurian rocks with a more Welsh affinity.

In the southwest, around Bantry Bay and the mountains of Macgillicuddy's Reeks, is an area of substantially deformed but only lightly metamorphosed Devonian-aged rocks.

This partial ring of "hard rock" geology is covered by a blanket of Carboniferous limestone over the centre of the country, giving rise to the comparatively fertile and famously "lush" landscape of the country. The west coast district of The Burren around Lisdoonvarna has well developed karst features. Elsewhere, significant stratiform lead-zinc mineralisation is found in the limestones (around Silvermines and Tynagh).

Hydrocarbon exploration is continuing. The first major find was the Kinsale Head gas field off Cork/Cobh by Marathon Oil in the mid-1970s. More recently, in 1999, Enterprise Oil announced the discovery of the Corrib Gas Field. This has increased activity off the west coast in parallel with the "West of Shetland" step-out development from the North Sea hydrocarbon province. Exploration continues, with a frontier well planned north of Donegal for August 2006 and continuing drilling of prospects in the Irish Sea and St Georges Channel.

Wildlife

Ireland has fewer animal and plant species than either Britain or mainland Europe because it became an island shortly after the end of the last glacial period, about 10, 000 years ago. Many different habitat types are found in Ireland, including farmland, open woodland, temperate broadleaf and mixed forests, conifer plantations, peat bogs, and various coastal habitats. According to the WWF, the territory of Ireland can be subdivided into two ecoregions: the Celtic broadleaf forests and North Atlantic moist mixed forests.

Fauna

Main article: Fauna of Ireland

Only 26 land mammal species are native to Ireland, because it was isolated from Europe by rising sea levels after the Ice Age. Some species, such as the red fox, hedgehog, and badger are very common, whereas others, like the Irish hare, red deer and pine marten are less so. Aquatic wild-life, such as species of turtle, shark, whale, and dolphin, are common off the coast. About 400 species of birds have been recorded in Ireland. Many of these are migratory, including the Barn Swallow. Most of Ireland's bird species come from Iceland, Greenland, Africa among other territories. There are no snakes in Ireland and only one reptile (the common lizard) is native to the country. Extinct species include the great Irish elk, the wolf, the great auk, and others. Some previously extinct birds, such as the Golden Eagle, have recently been reintroduced after decades of extirpation.

Agriculture drives current land use patterns in Ireland, limiting natural habitat preserves, [23] particularly for larger wild mammals with greater territorial needs. With no top predator in Ireland, populations of animals that cannot be controlled by smaller predators (such as the fox) are controlled by annual culling, i.e. semi-wild populations of deer.

Flora

See also: List of the vascular plants of Britain and Ireland and Trees of Britain and Ireland

Phytogeographically, Ireland belongs to the Atlantic European province of the Circumboreal Region within the Boreal Kingdom. Until medival times Ireland was heavily forested with oak, pine, beech and birch. Forests now cover about 9% (4, 450 km or one million acres) of the land.[24] Because of its mild climate, many species, including sub-tropical species such as palm trees, are grown in Ireland. Much of the land is now covered with pasture, and there are many species of wild-flower. Gorse (Ulex europaeus), a wild furze, is commonly found growing in the uplands, and ferns are plentiful in the more moist regions, especially in the western parts of Ireland. It is home to hundreds of plant species, some of them unique to the island. The country has been "invaded" by some grasses, such as Spartina anglica.[25]

The algal and seaweed flora is that of the cold-temperate. The total number of species is:- Rhodophyta: 264; Heterokontophyta: 152; Chloropyta: 114; Cyanophyta: 31 giving a total of 574. Rarer species include: Itonoa marginifera (J.Ag.) Masuda & Guiry); Schmitzia hiscockiana Maggs and Guiry; Gelidiella calcicola Maggs & Guiry; Gelidium maggsiae Rico & Guiry and Halymenia latifolia P.Crouan & H.Crouan ex Ktzing.[26] The country has been invaded by some algae, some of which are now well established: Asparagopsis armara Harvey - which originated in Australia and was first recorded by M. De Valera in 1939; Colpomenia peregrina Sauvageau - now locally abundant and first recorded in the 1930s; Sargassum muticum (Yendo) Fensholt - now well established in a number of localities on the south, west, and north-east coasts; Codium fragile ssp. fragile (formerly reported as ssp. tomentosum) - now well established.[27] Codium fragile ssp. atlanticum has recently been established to be native, although for many years it was regarded as an alien species.

The impact of agriculture

The long history of agricultural production coupled with modern intensive agricultural methods (such as pesticide and fertiliser use) has placed pressure on biodiversity in Ireland. "Runoff" of contaminants into streams, rivers and lakes impact the natural fresh-water ecosystems. A land of green fields for crop cultivation and cattle rearing limits the space available for the establishment of native wild species. Hedgerows however, traditionally used for maintaining and demarcating land boundaries, act as a refuge for native wild flora. Their ecosystems stretch across the countryside and act as a network of connections to preserve remnants of the ecosystem that once covered the island. Subsidies under the Common Agricultural Policy which supported these agricultural practices are undergoing reforms.[28] The CAP still subsidises some potentially destructive agricultural practices, however, the recent reforms have gradually decoupled subsidies from production levels and introduced environmental and other requirements.[28]

Forest covers about 10% of the country, with most designated for commercial production.[29] Forested areas typically consist of monoculture plantations of non-native species which may result in habitats that are not suitable for supporting a broad range of native species of invertebrates. Remnants of native forest can be found scattered around the country, in particular in the Killarney National Park. Natural areas require fencing to prevent over-grazing by deer and sheep that roam over uncultivated areas. This is one of the main factors preventing the natural regeneration of forests across many regions of the country.[30]

History

Main article: History of Ireland
History of Ireland
series
Prehistory
Early history
Early Christian Ireland
Early medieval and Viking era
Norman Ireland
Early Modern Ireland 1536-1691
Ireland 1691-1801
Ireland 1801-1922
History of Ireland (state)
History of Northern Ireland
Economic history
v d e
Stone age passage tombs at Carrowmore,  County Sligo Stone age passage tombs at Carrowmore, County Sligo

A long cold climatic spell prevailed until the end of the last glacial period about 9, 000 years ago, and most of Ireland was covered with ice. Sea-levels were lower then, and Ireland, as with its neighbour Britain, rather than being islands, were part of a greater continental Europe. Mesolithic stone age inhabitants arrived some time after 8000 BC. Agriculture arrived with the Neolithic circa 4500 to 4000 BC, when sheep, goats, cattle and cereals were imported from southwest continental Europe. At the Cide Fields in County Mayo, an extensive Neolithic field system - arguably the oldest in the world - has been preserved beneath a blanket of peat. Consisting of small fields separated from one another by dry-stone walls, the Cide Fields were farmed for several centuries between 3500 and 3000 BC. Wheat and barley were the principal crops.[31]

The Bronze Age, which began around 2500 BC, saw the production of elaborate gold as well as bronze ornaments, weapons and tools. The Iron Age in Ireland was supposedly associated with people known as Celts. They are traditionally thought to have colonised Ireland in a series of waves between the 8th and 1st centuries BC, with the Gaels, the last wave of Celts, conquering the island and dividing it into five or more kingdoms. Many scientists and academic scholars now favour a view that emphasises cultural diffusion from overseas over significant colonisation such as what Clonycavan Man was reported to be.[32][33] The Romans referred to Ireland as Hibernia[34] and/or Scotia.[35] Ptolemy in AD 100 records Ireland's geography and tribes.[36] Native accounts are confined to Irish poetry, myth, and archaeology. The exact relationship between Rome and the tribes of Hibernia is unclear; the only references are a few Roman writings.

In medieval times, a monarch (also known as the High King) presided over the (then five) provinces of Ireland. These provinces too had their own kings, who were at least nominally subject to the monarch, who resided at Tara. The written judicial system was the Brehon Law, and it was administered by professional learned jurists who were known as the Brehons.

According to early medieval chronicles, in 431, Bishop Palladius arrived in Ireland on a mission from Pope Celestine I to minister to the Irish "already believing in Christ." (This was to convert the Celtic Church to Roman Catholicism). The same chronicles record that Saint Patrick, Ireland's patron saint, arrived in 432. There is continued debate over the missions of Palladius and Patrick, but the general consensus is that they both existed and that 7th century annalists may have mis-attributed some of their activities to each other. Palladius most likely went to Leinster, while Patrick is believed to have gone to Ulster, where he probably spent time in captivity as a young man.

The druid tradition collapsed in the face of the spread of the new religion. Irish Christian scholars excelled in the study of Latin and Greek learning and Christian theology in the monasteries that flourished, preserving Latin and Greek learning during the Early Middle Ages. The arts of manuscript illumination, metalworking, and sculpture flourished and produced such treasures as the Book of Kells, ornate jewellery, and the many carved stone crosses that dot the island. From the 9th century, waves of Viking raiders plundered monasteries and towns, adding to a pattern of endemic raiding and warfare. Eventually Vikings settled in Ireland, and established many towns, including the modern day cities of Dublin, Cork, Limerick and Waterford.

Aughnanure,  the main castle of O'Flaherty Aughnanure, the main castle of O'Flaherty

From 1169, Ireland was entered by Cambro-Norman warlords, led by Richard de Clare, 2nd Earl of Pembroke (Strongbow), [37] on an invitation from the then King of Leinster. In 1171, King Henry II of England came to Ireland, using the 1155 Bull Laudabiliter issued to him by then Pope Adrian IV, to claim sovereignty over the island, and forced the Cambro-Norman warlords and some of the Gaelic Irish kings to accept him as their overlord. From the 13th century, English law began to be introduced. By the late thirteenth century the Norman-Irish had established the feudal system throughout most of lowland Ireland. Their settlement was characterised by the establishment of baronies, manors, towns and large land-owning monastic communities, and the county system. The towns of Dublin, Cork, Wexford, Waterford, Limerick, Galway, New Ross, Kilkenny, Carlingford, Drogheda, Sligo, Athenry, Arklow, Buttevant, Carlow, Carrick-on-Suir, Cashel, Clonmel, Dundalk, Enniscorthy, Kildare, Kinsale, Mullingar, Naas, Navan, Nenagh, Thurles, Wicklow, Trim and Youghal were all under Norman-Irish control.

In the 14th century the English settlement went into a period of decline and large areas, for example Sligo, were re-occupied by Gaelic septs. The medieval English presence in Ireland was deeply shaken by Black Death, which arrived in Ireland in 1348.[38] From the late 15th century English rule was once again expanded, first through the efforts of the Earls of Kildare and Ormond then through the activities of the Tudor State under Henry VIII and Mary and Elizabeth. This resulted in the complete conquest of Ireland by 1603 and the final collapse of the Gaelic social and political superstructure at the end of the 17th century, as a result of English and Scottish Protestant colonisation in the Plantations of Ireland, and the Wars of the Three Kingdoms and the Williamite War in Ireland. Approximately 600, 000 people, nearly half the Irish population, died during the Cromwellian conquest of Ireland.[39]

Hanging of suspected United Irishmen. Hanging of suspected United Irishmen.

After the Irish Rebellion of 1641, Irish Catholics and nonconforming Protestants were barred from voting or attending the Irish Parliament. The new English Protestant ruling class was known as the Protestant Ascendancy. Towards the end of the 18th century the entirely Anglican Irish Parliament attained a greater degree of independence from the British Parliament than it had previously held. Under the penal laws no Irish Catholic could sit in the Parliament of Ireland, even though some 90% of Ireland's population was native Irish Catholic when the first of these bans was introduced in 1691. This ban was followed by others in 1703 and 1709 as part of a comprehensive system disadvantaging the Catholic community, and to a lesser extent Protestant dissenters.[40] In 1798, many members of this dissenter tradition made common cause with Catholics in a rebellion inspired and led by the Society of United Irishmen. It was staged with the aim of creating a fully independent Ireland as a state with a republican constitution. Despite assistance from France the Irish Rebellion of 1798 was put down by British forces.

In 1800, the British and subsequently the Irish Parliament passed the Act of Union which, in 1801, merged the Kingdom of Ireland and the Kingdom of Great Britain to create the United Kingdom of Great Britain and Ireland. The passage of the Act in the Irish Parliament was achieved with substantial majorities, in part (according to contemporary documents) through bribery, namely the awarding of peerages and honours to critics to get their votes.[41] Thus, Ireland became part of an extended United Kingdom, ruled directly by the UK Parliament in London.

The Great Famine, which began in the 1840s, caused the deaths of one million Irish people, and caused over a million to emigrate.[42] By the late 1840s, as a result of the famine, half of all immigrants to the United States originated from Ireland. A total of 35 million Americans (12% of total population) reported Irish ancestry in the 2005 American Community Survey.[43] Mass emigration became entrenched as a result of the famine and the population continued to decline until late in the 20th century. The pre-famine peak was over 8 million recorded in the 1841 census. The population has never returned to this level.[44]

The 19th and early 20th century saw the rise of Irish nationalism among the Roman Catholic population. Daniel O'Connell led a successful campaign for Catholic Emancipation, which was passed by the United Kingdom parliament. A subsequent campaign for repeal of the Act of Union failed. Later in the century Charles Stewart Parnell and others campaigned for self-government within the Union or "home rule". Protestants, largely concentrated in Ulster, who considered themselves to be British as well as Irish, were strongly opposed to home rule, under which they would be dominated by Catholic and Southern interests. To prevent home rule the Ulster Volunteers were formed in 1913 under the leadership of Lord Carson, and to impose home rule the Irish Volunteers were formed in the South in 1914 under John Redmond. Armed rebellions, such as the Easter Rising of 1916 and the Irish War of Independence of 1919, occurred in this period. In 1921, a treaty was concluded between the British Government and the leaders of the Irish Republic. The Treaty recognised the two-state solution created in the Government of Ireland Act 1920. Northern Ireland was presumed to form a home rule state within the new Irish Free State unless it opted out. Northern Ireland had a majority Protestant population and opted out as expected, choosing to remain part of the United Kingdom, incorporating, however, within its border a significant Catholic and nationalist minority. A Boundary Commission was set up to decide on the boundaries between the two Irish states, though it was subsequently abandoned after it recommended only minor adjustments to the border. Disagreements over some provisions of the treaty led to a split in the nationalist movement and subsequently to the Irish Civil War. The Civil War ended in 1923 with the defeat of the anti-treaty forces.

History since partition

Irish Independence: The Irish Free State, ire, Ireland

Main article: History of the Republic of Ireland Republic of Ireland flag. Republic of Ireland flag.

The Anglo-Irish Treaty was ratified by the Dil in January 1922 by a vote of 64 - 57. The minority refused to accept the result and this resulted in the Irish Civil War, which lasted until 1923. On 6th December 1922, in the middle of the Civil War, the Irish Free State came into being. During its early years the new state was governed by the victors of the Civil War. However, in the 1930s Fianna Fil, the party of the opponents of the treaty, was elected into government. The party proposed, and the electorate accepted in a referendum in 1937, a new constitution which renamed the state "ire or in the English language, Ireland" (article 4 of the Constitution).

The state was neutral during World War II, which was known internally as The Emergency. It offered some assistance to the Allies, especially in Northern Ireland. It is estimated[45] that around 50, 000 volunteers from ire/Ireland joined the British armed forces during the Second World War. In 1949, Ireland declared itself to be a republic.

Ireland experienced large-scale emigration in the 1950s and again in the 1980s. From 1987 the economy improved and the 1990s saw the beginning of unprecedented economic success, in a phenomenon known as the "Celtic Tiger". By 2007 it had become the fifth richest country (in terms of GDP per capita) in the world, and the second richest in the European Union, moving from being a net recipient of the budget to becoming a net contributor during the next budget round (2007-13), and from a country of net emigration to one of net immigration. In October 2006, there were talks between Ireland and the U.S. to negotiate a new immigration policy between the two countries, in response to the growth of the Irish economy and desire of many U.S. citizens who sought to move to Ireland for work.[46]

Northern Ireland

The Ulster Banner,  used as the flag of the former Government of Northern Ireland 1953 - 1972,  now unofficially used by some sporting organisations to represent the area,  some unionist-controlled local authorities and loyalists. The Ulster Banner, used as the flag of the former Government of Northern Ireland 1953 - 1972, now unofficially used by some sporting organisations to represent the area, some unionist-controlled local authorities and loyalists. Parliament Buildings,  seat of the present Northern Ireland Assembly. Parliament Buildings, seat of the present Northern Ireland Assembly. Main article: History of Northern Ireland

Northern Ireland was created as an administrative division of the United Kingdom by the Government of Ireland Act 1920. From 1921 until 1972, Northern Ireland enjoyed limited self-government within the United Kingdom, with its own parliament and prime minister.

In the first half of the 20th century, Northern Ireland was largely spared the strife of the Civil War, but there were sporadic episodes of inter-communal violence between nationalists and unionists during the decades that followed partition. Although the Irish Free State was neutral during World War II, Northern Ireland as part of the United Kingdom was not, and became involved in the British war effort (albeit without military conscription as it was introduced in Great Britain). Belfast suffered a bombing raid from the German Luftwaffe in 1941.

In elections to the 1921-1972 regional government, the Protestant and Catholic communities in Northern Ireland each voted largely along sectarian lines, meaning that the Government of Northern Ireland (elected by "first past the post" from 1929) was controlled by the Ulster Unionist Party. Over time, the minority Catholic community felt increasingly alienated by the regional government, with further disaffection fuelled by practices such as gerrymandering of the local council in Derry, and alleged discrimination against Catholics in housing and employment.[47]

In the late 1960s nationalist grievances were aired publicly in mass civil rights protests, which were often confronted by loyalist counter-protests. The Government's reaction to confrontations was seen to be one-sided and heavy-handed, and law and order broke down as unrest and inter-communal violence increased. In August 1969, the regional government requested that the British Army be deployed to aid the police, who were exhausted after several nights of serious rioting. In 1970, the paramilitary Provisional IRA, which favoured the creation of a united Ireland, was formed and began a campaign against what it called the "British occupation of the six counties". Other groups, on both the unionist side and the nationalist side, participated in the violence and the period known as "The Troubles" began, resulting in over 3600[48] deaths over the subsequent three decades. Owing to the civil unrest during "The Troubles", the British government suspended home rule in 1972 and imposed "direct rule" from Westminster.

There were several (ultimately unsuccessful) political attempts to end "The Troubles", such as the Sunningdale Agreement of 1973 and the Anglo-Irish Agreement of 1985. In 1998, following a Provisional IRA ceasefire and multi-party talks, the Belfast Agreement was concluded and ratified by referendum. This agreement attempted to restore self-government to Northern Ireland on the basis of power-sharing between the two communities. Violence decreased greatly after the signing of the accord, and on 28 July 2005, the Provisional IRA announced the end of its armed campaign and international weapons inspectors supervised what they currently regard as the full decommissioning of the Provisional IRA's weapons.[49] The power-sharing assembly was suspended several times but restored from 8 May 2007.

From 2 August 2007, Britain officially ended its military support of the police in Northern Ireland, and began withdrawing troops. (In 1972, British troops numbered more than 25, 000 in Northern Ireland. After the withdrawal, a garrison of approximately 5, 000 is all that remains.)

Science

Ireland has a rich history in science and is known for its excellence in scientific research conducted at its many universities and institutions. Noted particularly is Ireland's contributions to fiber optics technology and related technologies.

Founder of modern chemistry Robert Boyle was an Anglo-Irish natural philosopher, chemist, physicist, inventor and early gentleman scientist, noted for his work in physics and chemistry. He is best known for the formulation of Boyle's law.

Other notable Irish Physicists include Ernest Walton (winner of the 1951 Nobel Prize in Physics with Sir John Douglas Cockcroft for splitting the nucleus of the atom by artificial means and contributions in the development of a new theory of wave equation), George Johnstone Stoney (famous for introducing the term electron in 1874 and as the uncle of the physicist George FitzGerald and distant relative of mathematician Alan Turing), Joseph Larmor (who predicted the phenomenon of time dilation [for orbiting electrons] and published a paper describing FitzGerald-Lorentz contraction some two years before Hendrik Lorentz and some eight years before Albert Einstein), John Stewart Bell (famous as the originator of Bell's Theorem and his paper concerning the discovery of the Bell-Jackiw-Adler anomaly - Bell was nominated for a Nobel prize), George Francis FitzGerald, sir George Gabriel Stokes and many others.

Notable mathematicians include Sir William Rowan Hamilton (mathematician, physicist, astronomer and discoverer of quaternions), Francis Ysidro Edgeworth (influential in the development of neo-classical economics, including the Edgeworth box), John B. Cosgrave (specialist in number theory, former head of the mathematics department of St. Patrick's College and discoverer of a new 2000-digit prime number in 1999 and a record composite Fermat number in 2003) and John Lighton Synge (who made progress in different fields of science, including mechanics and geometrical methods in general relativity and who had mathematician John Nash as one of his students).

The Dublin Institute for Advanced Studies (DIAS) was established in 1940 by the Taoiseach amon de Valera. In 1940, physicist Erwin Schrdinger received an invitation to help establish the Institute. He became the Director of the School for Theoretical Physics and remained there for 17 years, during which time he became a naturalized Irish citizen.

Culture

Main articles: Culture of Ireland and Irish people Arts in Ireland
 The Book of Kells. The Book of Kells.
Newgrange -5000 year old burial site. Newgrange -5000 year old burial site.

Literature and the arts

Main articles: Irish literature and Irish art

For an island of relatively small population, Ireland has made a disproportionately large contribution to world literature in all its branches, mainly in English. Poetry in Irish represents the oldest vernacular poetry in Europe with the earliest examples dating from the 6th century; Jonathan Swift, still often called the foremost satirist in the English language, was wildly popular in his day for works such as Gulliver's Travels and A Modest Proposal, and he remains so in modern times. More recently, Ireland has produced four winners of the Nobel Prize for Literature: George Bernard Shaw, William Butler Yeats, Samuel Beckett and Seamus Heaney. Although not a Nobel Prize winner, James Joyce is widely considered one of the most significant writers of the 20th century; Samuel Beckett himself refused to attend his own Nobel award ceremony, in protest of Joyce not having received the award. Joyce's 1922 novel Ulysses is considered one of the most important works of Modernist literature, and his life is celebrated annually on June 16 in Dublin as the Bloomsday celebrations.[50]

The early history of Irish visual art is generally considered to begin with early carvings found at sites such as Newgrange. It is traced through Bronze age artifacts, particularly ornamental gold objects, and the religious carvings and illuminated manuscripts of the medival period. During the course of the 19th and 20th centuries, a strong indigenous tradition of painting emerged, including such figures as John Butler Yeats, William Orpen, Jack Yeats and Louis le Brocquy.

Modern Irish literature is still often connected with its rural heritage, though writers like John McGahern and poets like Seamus Heaney. There is a thriving performing arts culture in many Irish centres, most particularly in Galway.

Music and dance

Main article: Music of Ireland

The Irish tradition of folk music and dance is also widely known. In the middle years of the 20th century, as Irish society was attempting to modernise, traditional music tended to fall out of favour, especially in urban areas. During the 1960s, and inspired by the American folk music movement, there was a revival of interest in the Irish tradition. This revival was led by such groups as The Dubliners, The Chieftains, The Wolfe Tones, the Clancy Brothers, Sweeney's Men, and individuals like [[ct]]: Convert Currency Reach

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