Beggar-my-neighbour devaluation: the case of Ireland, 1967

Jocely Horne*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)

Abstract

The purpose of this empirical study is to assess the effectiveness of a beggar-my-neighbour devaluation using the Irish devaluation against sterling in 1967 as a case study. A dynamic continuous time model of a small, open economy with a money, goods and labour market is estimated. The simulation results show that while the effects of devaluation were in the direction predicted, raising the stock of foreign reserves, the rate of inflation and lowering unemployment, the magnitude of the effects, especially on external balance was small.

Original languageEnglish
Pages (from-to)327-338
Number of pages12
JournalEuropean Economic Review
Volume15
Issue number3
DOIs
Publication statusPublished - 1981

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